2022 Annual Sustainability Report

Expanding Our Reach,
Enhancing Our Impact
April 2023

Cover image: London - Bayo, Principal;
and Anna, Project Leader

Boston Consulting Group partners with leaders
in business and society to tackle their mostimportant challenges and capture their greatest
opportunities. BCG was the pioneer in businessstrategy when it was founded in 1963. Today,
we work closely with clients to embrace atransformational approach aimed at benefiting
all stakeholders—empowering organizations togrow, build sustainable competitive advantage,
and drive positive societal impact.
Our diverse, global teams bring deep industry andfunctional expertise and a range of perspectives
that question the status quo and spark change.
BCG delivers solutions through leading-edge
management consulting, technology and design,and corporate and digital ventures. We work in auniquely collaborative model across the firm andthroughout all levels of the client organization,
fueled by the goal of helping our clients thrive andenabling them to make the world a better place.

Contents

02 | Executive
Introduction

56 | Empowering
Our People

04 | About This
Report74 | Promoting
Responsible
Business
Practices

16 | Driving Social
Impact31 | Protecting Our
Planet85 | Appendix

Executive Introduction
2023 marks BCG’s 60th anniversary—a time to pause and reflect
on what we’re contributing to the world and how we’re living up to
our values. Our 2022 Annual Sustainability Report, which we—CEO
Christoph Schweizer and CSO David Webb—are pleased to
introduce, gives us a chance to do just that.
This year’s report—Expanding Our Reach, Enhancing Our Impact—offers
a window into our impact through a wide range of client stories and athoughtful exploration of the ways in which we’ve driven positive change
within the firm, with our clients, and for society.

Christoph, CEO

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EXPANDING OUR REACH, ENHANCING OUR IMPACT

Within Our Four Walls
Our client work and external partnerships represent only
part of our impact. To lead by example outside BCG, wemust also work hard to examine our internal challenges
and transform our own operations.
This starts with our people, who are the engine of ourimpact and our success. We continue to make it a toppriority to attract and retain the best people from all
backgrounds—nurturing an environment in which all feel
free to challenge each other and learn from one another.
Watch Christoph Schweizer introduce BCG’s 2022
Sustainability Report.

Opportunities to Live Up to Our
Commitments
New and unexpected shocks in 2022, including devastating
war in Ukraine and deepening geopolitical uncertainty,
presented BCG with more urgent opportunities than everto lead with integrity and work toward our purpose of“unlocking the potential of those who advance the world.”
The pages that follow spell out how we stepped up,
responding to the challenges and pushing forward ouragenda to drive positive societal and planetary change.

Driving Impact with Our clients
Our founder Bruce Henderson put it well: “The mostimportant value of all, for each professional, must be
dedication to the task of optimizing client contribution tosociety.” Whether we’re responding to a sudden crisis, suchas a global pandemic, or to multifaceted problems that
require long-term solutions, such as climate change, we
believe at BCG that we have the ability and the
responsibility to take action.

Diversity is key to building that environment. Our global
team grew to more than 30,000 people in 2022, withwomen representing 46% of our global headcount and 33%
of our Executive Committee. In the US, 46% of our people
and 51% of our new hires in 2022 were from racial or
ethnic minority groups. To provide an unparalleledexperience for our people, we invested heavily in learningand development, and offered broad flexibility programs to
improve day-to-day sustainability.
We also continued accelerating progress on our internal
net-zero climate goals in 2022. Our footprint was about
30% smaller than our 2018 baseline, putting us on track toachieve our 2025 science-based targets and deliver on our2030 net-zero ambition. To address the emissions wecannot yet reduce, we purchase an equivalent volume ofhigh-impact carbon credits, helping to advance and scale
the most promising solutions for carbon dioxide removal,such as direct-air capture and storage.

More Impact, More Growth
The year 2022 required quick thinking and agility—areadiness to grow and change. As a business, we saw
double-digit revenue growth, demonstrating that sociallytransformative business is also profitable business, andthat we have an important role to play in supporting clientsand organizations as they navigate these uncertain times.

Here are some examples of how that action manifested
in 2022:• We completed more than 1,500 projects related tosocietal and planetary impact with 780 clients.
• 72% of the largest companies we work with wereinvolved in at least one societal or planetary impact case.
• About 40% of the firm’s managing directors andpartners were actively involved in impact work.

Christoph Schweizer
Chief Executive Officer

David Webb
Chief Sustainability Officer• We’ve invested $1 billion so far this decade to advancesocietal and planetary impact with leading private,public, and social sector organizations, including bothpro bono and direct financial support.

BOSTON CONSULTING GROUP

3

New York - Neema, Principal
Contents

About This ReportW

elcome to Boston Consulting Group’s 2022 Annual
Sustainability Report. Here we outline policies
and programs designed to realize our values andpurpose while addressing urgent global challenges. We
describe BCG’s material nonfinancial impact during the2022 calendar year for Boston Consulting Group, Inc., as asingle entity.1 Boston Consulting Group, Inc., is the ultimate
parent company for all of our operating entities worldwide.
This report also fulfills the requirements of relevant ESG
reporting regulations applicable to BCG subsidiaries, suchas Boston Consulting Group Nordic AB (“BCG Sweden”).

Climate-Related Disclosure recommendations. This report
was reviewed and approved by members of BCG’s Executive
Committee, as well as by representatives from the Steering
Committees who oversee the topics covered in this report.
This report also serves as our annual Communication on
Progress (CoP), which we submit to the UN Global Compact
alongside—for the first time this year—the CoP questionnaire.
If you have any questions about this report, please send
them by email to SustainabilityReporting@bcg.com.

Boston Consulting Group, Inc., has reported in accordancewith the GRI Standards for this reporting period. In the
Appendix of this report, you can find index tables covering the
GRI core reporting standards, the World Economic Forum
Stakeholder Capitalism Metrics, and the Task Force on

1. Although most of the content of this report focuses on events from the 2022 calendar year, certain statements look forward and thus reflect ourcurrent expectations regarding future events. Words such as “expects” and “plans” are intended to identify forward-looking statements. Suchstatements are based on the best information available to us on the date of publication, but they are subject to many risks and uncertainties that
may cause actual results to differ. We undertake no obligation to publicly update or revise any forward-looking statements in this report.
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EXPANDING OUR REACH, ENHANCING OUR IMPACT

About BCG

1963

founded by Bruce Henderson

30,000employees$11.7

billion revenue

100+
Brussels - Tom, Principal;
andLaura,
Consultant
BOSTON
CONSULTINGGROUP

oﬃces in more than 50 countries
5Warsaw - Katarzyna, Senior Associate
Contents

Our Purpose and ValuesAt BCG, our purpose is at the heart of everything wedo, as we pursue the answers to two questions:“Who are we when we’re at our best?” and “Whatfundamental needs in the world are we working to address?” In essence, our purpose boils down to this:Unlocking the potential of those who advancethe world.
Underpinning this simple phrase are five core purpose
principles:• We bring insight to light by challenging traditional
thinking and ways of operating and by bringing fresh
perspectives to the toughest problems.
• We drive inspired impact by looking beyond the next
deadline to the next decade and by collaborating closelywith our clients to enable and energize their organizations.

6• We conquer complexity by discovering unique sourcesof competitive advantage and hidden truths in dynamic,
complex systems.
• We lead with integrity by confronting the hard issues,staying true to our values, and stating our views candidly
and directly.
• We grow by growing others, enabling our clients, ourcolleagues, and the broader community to build successand achieve their full potential.
These principles are foundational to our purpose andpermeate our culture. They articulate what BCG looks likeat its best, and they serve as a compass to ensure that we
embody our ethos and realize our fundamental goals. We
celebrate colleagues who best personify these principles withour biannual Key to Purpose awards, and we issue frequent
communiqués to engage with and inspire our people.

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Our Values
Having a strong culture anchored in clear values helps
make BCG a market leader—and a rewarding, inspiring
place to work. We are committed to the highest standardsof ethics and business conduct, as set forth in our Values
Statement. Every BCG employee is expected to upholdthese standards:

The strategic perspective enabling our clients todeliver superior results in a sustainable manner

Integrity as an expression of courage and accountability

Value delivered in the form of tangible, positive, andlasting change

Respect for the individual and their capacity and desire
for personal growthPartnership guided by a long-term view of ourrelationships, internally and with clientsDiversity of thought, expertise, experience,and background

Expanding the art of the possible because the goal is
not simply to apply best practice, but also to invent it

Clients come first and their success is the measureof our successSocial impact to make the world a better place

2022 in Numbers

95%

of our people say they feela personal accountability
to uphold BCG’s values

BOSTON CONSULTING GROUP

100%

of our people completea training covering ourvalues and purpose

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Munich - Platinion case teamContents

Our Vision and Impact in 2022

1,500+$1B+
72%
8

projects on societal andplanetary impact completedwith 780 clients in 2022

invested in societal
and planetary impact
so far this decadeof our largest clients wereinvolved in at least one
societal or planetaryimpact case

~150
40%
2,100+

thought leadership publications
focused on solving societal andplanetary issues in 2022

of managing directors andpartners were actively
involved in impact work

experts at BCG working onsocietal and planetary impact
topics across industries,functions, and geographies
EXPANDING OUR REACH, ENHANCING OUR IMPACT

Our Vision and Impact
We have defined a bold vision to be the most positively impactful company in the world.
To achieve this goal, we must take a rigorous approach tosolving the world’s toughest challenges.

Our Impact with Clients
For decades, we’ve dedicated our time and resources toworking together with corporate clients, governments,
partners, and NGOs to create positive economic, environmental, and societal impact in ways that are sustainable
for the long term. By investing for impact alongside someof the world’s leading organizations—and bringing thebest of BCG to social impact challenges—we have helped
realize change where it is most needed.
• Over 1,500 projects on societal and planetary impact
completed with 780 clients in 2022
• Over $1 billion invested in societal and planetaryimpact so far this decade2• 72% of our largest clients were involved in at least one
societal or planetary impact case• ~150 thought leadership publications focused on solving
societal and planetary issues in 2022
• 40% of managing directors and partners were actively
involved in impact work
• 2,100+ experts at BCG working on societal and planetaryimpact topics across industries, functions, and geographies

Our Impact Within Our Operations
BCG is a signatory of the World Economic Forum’s Stakeholder Capitalism Metrics. Below, we outline our performance against the four themes of the metrics: planet,people, prosperity, and governance. For more information,
see the GRI Index table in the Appendix (page 96).

2. Investments include both cash and in-kind support for social impact
and climate and sustainability programs from January 2020 to
December 2022.

BOSTON CONSULTING GROUP

Sydney - Jan, Senior Specialist

9Planet• We have committed to reach net-zero climate impact
by 2030.
• We have invested more than $500 million in climate
action so far this decade.
• Our greenhouse gas emissions in 2022 amounted to~406 metric kilotons of CO2e (down ~30% versus 2018).
• Our science-based targets aim to cut in half ouremissions intensity by 2025 (against a 2018 baseline).
• 100% of our office electricity came from renewableenergy sources.
• We align our reporting with the TCFD recommendations.3

Prosperity• Our global headcount grew to over 30,000.
• We generated $11.7 billion in revenue globally.
• We invest from 10% to 15% of our annual capacity inresearch and development.
• We invested $460 million in societal and planetaryimpact with clients in 2022.

Governance• 100% of BCG employees have completed ourmandatory business ethics online training.4

People• 10,000 people joined BCG, with women representing
45% of new hires.

• 100% of BCG employees have access to a confidential
ombudsperson channel designed to seek advice orraise concerns.

• 46% of our global headcount are women.

• Our Executive Committee is composed of appointed
and elected members covering BCG’s key
geographies and business areas. 33% of the Executive
Committee are women.

• We maintain equal promotion and retention rates for
women and men within the consulting team.

• We grew our Global Risk Management function by
32% in 2022.

• 46% of our US consulting staﬀ and 51% of new hires
in the US are from racial or ethnic minorities.
• BCG employees complete one week of formal training annually, on average.
• 100% of BCG employees have access to health andwell-being resources and services.

3. Taskforce on Climate-Related Financial Disclosure (TCFD); see page 89 of the Appendix for more details on how we have aligned our reportingwith the TCFD framework.
4. Because new people routinely join BCG, and some of them may not have completed the training at the time of reporting, compliance ismarginally under 100%.

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EXPANDING OUR REACH, ENHANCING OUR IMPACT

Governance
Boston Consulting Group, Inc., is a privately held corporation.
The corporation is wholly owned by the members of its
partnership. BCG’s offices are owned directly or indirectly by
Boston Consulting Group, Inc.
Boston Consulting Group, Inc., is governed by its board of
directors. BCG’s CEO and Executive Committee are empowered to act on behalf of the board except for certain powersthat the board has reserved to itself. The Executive Committee is responsible for setting the firm’s strategy, vision, anddirection with regard to investments, policy, growth, businessmix, people, and philosophy. The Executive Committee iscomposed of appointed and elected members. The CEO iselected by the full board every four years, and a CEO canserve for a maximum of two terms. Executive Committee
members appointed by the CEO are generally eligible toserve for a maximum of six years, although that maximum
may be extended if it is in the best interests of the firm to doso. Elected members serve three-year terms and must be
reelected for their second and final term.
You can read more about the composition of BCG’s
Executive Committee and its members’ competencies
on our leadership webpage.
The Executive Committee has established a number ofsteering groups to manage the environmental, social, andgovernance topics outlined in this report. These steeringgroups have a reporting line to the Executive Committee
and will be invited to report to the Executive Committee
on priority topics.
BCG’s Social Impact practice leadership team addresses
the initiatives covered in the “Driving Social Impact”
chapter of this report. The leadership team is composedof managing directors and partners (MDPs).

BOSTON CONSULTING GROUP

With regard to the programs covered in the “Protecting Our
Planet” chapter of this report, the Internal Sustainability
Strategic Committee (Strat Co.) addresses BCG’s internal
net-zero efforts, and the Climate and Sustainability Leadership Team addresses BCG’s engagement with clients andthe broader society.
In 2022, David Webb became BCG’s chief sustainability
officer (CSO). David chairs the Strat Co. and reports directly to BCG’s CEO. The Strat Co. is responsible for leading
the development and implementation of our sustainability
strategy, including oversight of climate-related risks. The
Strat Co. currently consists of BCG’s chairman, chief sustainability officer, chief financial officer, and people chairand meets monthly. All Strat Co. members have theirannual performance rating and remuneration tied to theinternal sustainability performance of the firm.
The People Team addresses the topics covered in the“Empowering Our People” chapter. Led by chair Dinesh
Khanna, the People Team focuses on the needs of BCG’s
three main cohorts: consultants, business services andknowledge teams, and managing directors and partners.
Its purpose is to set programs and policies to attract, develop, energize, and retain talent across all cohorts and to put
measures in place to support the success of our people
and our clients. The People Team chair also sits on the
Executive Committee and on the Internal Sustainability
Steering Committee. In 2022, Nadjia Yousif became BCG’schief diversity officer (CDO) to drive our agenda and be thevoice for diversity, equity, and inclusion internally andexternally. Our CDO reports directly to BCG’s CEO.
The Audit and Risk Committee is chiefly responsible foraddressing the topics covered in the “Promoting Responsible Business Practices” chapter of this report. Members of
this committee are nominated by the Executive Committee
and elected by the board of directors.

11

Stakeholder Engagement
Identifying our primary stakeholder groups and engaging
with them to define our most material topics are critical toensuring that our strategy, work, and reporting cover theright topics in the right way. Doing so also allows us tofocus resources and investment on the activities throughwhich we can drive the greatest impact.

STAKEHOLDERS

We firmly believe that stakeholder engagement should be acontinuous process aimed at understanding how priorities
are evolving in a fast-paced and dynamic business environment and in society. The table below highlights our primary
stakeholder groups and explains why and how we listen tothem in the process of shaping our materiality assessment.

WHY WE LISTEN

EXAMPLES OF HOW WE LISTENBCG leadership

To set the strategic direction and priorities
for the firm and to understand which
corporate sustainability issues are mostimportant to our leadership and clients• Biannual meeting of worldwide MDPs
• Annual people survey for MDPs
• Management committees and briefing calls

BCG employees

To inform our people management
strategy and employee value proposition
and to understand which corporate
sustainability issues are most importantto our people• Annual people survey• Regular pulse check surveys• Weekly case team surveys• Annual global town hall meetings for all staff• Biannual career management anddevelopment meetings• Employee networks on environmental, social,and governance (ESG) topics

Clients

To better understand the challenges ourclients and their industries face and to
identify opportunities to improve ourservices and client delivery• Client relationship management and dialogue• Business leader surveys• Client ESG questions in tender documents• Client-led reporting disclosures (such as
EcoVadis)

Future talent

Civil society

Suppliers12

To understand what drives the career
selection and decision-making process ofthe highest-potential talent and to better
position BCG as the employer of choice
To understand what drives the career
selection and decision-making process ofthe highest-potential talent and to better
position BCG as the employer of choice
To better understand supplier concerns
and to manage risk in our supply chain inorder to identify opportunities to collaborate on ESG topics• Participation in recruitment events• Surveying our candidates and new recruits• Participation in industry forums, working
groups, and roundtable events• Placement of BCG employees with BCG
partner organizations• Responding to consultations and ad hoc
dialogue• Regular tender processes• Ongoing supplier relationship management• Annual business reviews

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Focusing on the Topics That Matter Most
We update our materiality matrix annually, matching the
rapid pace of BCG’s transformation and the increasing
maturity of our ESG programs. The matrix reflects ongoing
trends analysis and stakeholder input. We have solicited
input from a diverse group of external and internal stakeholders, including our leadership, employees, clients, suppliers, NGOs, and future talent.
We also consult existing reporting frameworks to shapeand inform our materiality assessment. We use theSustainability Accounting Standards Board (SASB) sectoral
guidance as a basis for defining our material topics, and wealign our material topics with the ten global principles
outlined in the UN Global Compact. We have aligned thisreport with the GRI standards, WEF Stakeholder Capitalism Metrics, and Task Force on Climate-Related Financial
Disclosures framework as well. In the Appendix, we provide
index tables to explain our alignment with these standards.
The results of our materiality assessment, depicted
in Exhibit 1, include two new topics for 2022—artificial
intelligence (AI) and code of client service. Click on a topic
to navigate to the relevant section of the report, where
you can read more about our approach and our 2022
performance relating to this topic.

Exhibit 1 - BCG 2022 Materiality Assessment
Client work on social impact

Business ethics and anti-corruption

Community engagement

Risk management

Client work on climate impact

Human rights

Climate action and emissions

Sustainable procurement

Talent attraction

Supplier diversity

Working conditions

Data privacy and information security

Diversity, equity, and inclusion

Responsible AI*

Learning and development

Code of client service*

Employee well-being

Safety and security

Driving Social Impact

Empowering Our People

Protecting Our Planet

Responsible Business Practices

New topic for 2022

Source: BCG.

BOSTON CONSULTING GROUP

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UN Sustainable Development Goals
The Sustainable Development Goals (SDGs) ratified by themember states of the United Nations in 2015 provide a
blueprint for achieving a better and more sustainable
future for all. (See Exhibit 2.) The SDGs include ending
poverty, improving health, providing access to high-quality
education, and reducing inequalities. They also addressenvironmental challenges, such as tackling the climate
crisis and preserving natural environments. The goals
represent an urgent call for action by all countries to workin partnership to achieve peace and prosperity for people
and the planet.

Although we have an impact on all of the SDGs in our workwith clients, we believe that collaboration across sectors isimperative, so we place special emphasis on Goal 17:
partnerships to achieve the goals.
Beyond our support for our clients and social impact
part­ners, we also have an impact on the SDGs through the
projects we support within our carbon credit portfolio aspart of our CarbonNeutral® company certification. The
primary focus of these projects is Goal 13, climate action,
but these projects also deliver secondary benefits thatalign with other SDGs. For more details, see Exhibit 10 on
page 55.

As a global firm engaged with business, government, andthe social sector on critical challenges and transformational
strategies, BCG focuses intensively on the SDGs. We help awide array of organizations develop their capabilities in thearea of global sustainable development.

Exhibit 2 - The UN Sustainable Development Goals (SDGs)

02

01
NO
POVERTY

AFFORDABLE
AND CLEAN
ENERGY13
CLIMATEACTIONGOOD HEALTH
AND WELL-BEINGZERO
HUNGER

07

03

08

09

DECENT WORKAND ECONOMICGROWTH

INDUSTRY,INNOVATION AND
INFRASTRUCTURE

14LIFE
BELOW WATER15LIFEON LAND

04
QUALITYEDUCATION

10
REDUCEDINEQUALITIES

05

06

GENDEREQUALITY

CLEAN WATER
AND SANITATION

11

12

SUSTAINABLE
CITIES ANDCOMMUNITIES16RESPONSIBLE
CONSUMPTION
AND PRODUCTION

17

PEACE, JUSTICEAND STRONG
INSTITUTIONSPARTNERSHIPSFOR THE GOALS

Source: United Nations Sustainable Development Goals.

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EXPANDING OUR REACH, ENHANCING OUR IMPACT

2022 Awards and Recognitions

Achieved an A rating in the 2022 CDP Climate Disclosure for the second year, placing us in
the top 2% of companies rated by CDP

Achieved a Gold rating in the EcoVadis supplier sustainability assessment for the third consecutive year, placing us in the top 2% of companies assessed by EcoVadis

Targets validated by the Science-Based Targets initiative (SBTi) as aligned with the mostambitious goal of the Paris Agreement: to limit a global temperature rise to 1.5°C above
preindustrial levels

Maintained the number one ranking in Consulting magazine’s Best Firms to Work For list, forthe ninth consecutive year

Received a perfect score for the 16th consecutive year on the Human Rights Campaign’s
Corporate Equality Index

Named as one of the 100 Best Companies to Work For by Seramount

Ranked in the Glassdoor Top 10 Best Places to Work list in the US

Rated Best Company for Diversity, Global Culture, Career Growth, and Happiness by Comparably (plus another nine awards)

Rated as one of the World’s Top Female Friendly companies by Forbes and Statista

Ranked as one of the top three best consulting firms to work for by Vault for the third consecutive year

Sole corporate recipient of the 2022 Ethical Leadership Award

BOSTON CONSULTING GROUP

15

Driving Social Impact

Shenzhen - Hermin,
Senior Associate

Contents

1500+ projects on societal and planetaryimpact topics completed with 780 clients>$1 billion invested to advance societal andplanetary impact since 20201$1 billion
460

900
2020

1,300

2021

280

310

2020

2021

1,500
2022

2022

72% of our largest clients were involved in at least
one societal or planetary impact case in 2022

2,100+ experts at BCG working onsocietal and planetary impact topics

72%

Investments include both cash and in-kind support for societal and planetary impact programs.

1

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EXPANDING OUR REACH, ENHANCING OUR IMPACT

2022 Highlights
BCG’s Social Impact and Climate & Sustainability
practices have been BCG’s fastest-growing
capabilities, growing exponentially to a dedicatedteam of more than 2,100 people and delivering
impact efforts that represented 12% of BCG’swork in 2022. To sharpen our focus and accelerate
further in both of these crucial areas, Social
Impact and Climate & Sustainability became
separate sister practices this year.

2022 in Numbers
150~
thought leadership publications focused on
solving societal and planetary issues in 2022

40%

of BCG’s managing directors and partners
actively involved in societal and planetary impact work

Social Impact and Climate & Sustainability are
central to BCG’s purpose, as 40% of managing
directors and partners and 22% of our consulting
team worked full time on at least one impact
project last year.

In a tumultuous year, BCG responded to multiple
unfolding crises. We provided humanitarian
support across various phases of the Ukraine war,
worked to ensure a better response to the next
global pandemic, and helped craft climate risk
adaptation and resilience plans for the Global
South, among other actions.

6

key topic areas being worked on, covering Economic
Development, Global Health and Education

22%of our consulting team worked on a societal
and planetary impact case in 2022

As part of our goal to be the most positively
impactful company in the world, we’re helping
some of the world’s biggest private sector
organizations catalyze change. Last year, we led
more than 1,500 societal and planetary impact
projects.

BOSTON CONSULTING GROUP

17

A

t BCG, we are committed to being the most positively
impactful company in the world. This ambition liesat the heart of everything we do and is core to our
purpose and values.

Social Impact Client WorkFor decades, we’ve dedicated our time and resources toworking together with corporate clients, governments, andNGO partners to create positive economic, environmental,
and societal impact in ways that are sustainable for thelong term. By investing for impact alongside some of theworld’s leading organizations—and bringing the best of
BCG to social impact challenges—we have helped realizechange where it is most needed.

• Economic Development. Accelerating the end of
extreme poverty and improving livelihoods by fostering
inclusive growth and opportunity.

As we work to advance progress on the UN’s Sustainable
Development Goals (SDGs), we strongly believe that theprivate sector has an important role to play. Scalable social
impact initiatives can offer companies and investors an
opportunity to be a force for good while driving profit. We
help our clients make this link between social impact andbusiness success through authentic ESG efforts and thetransformation of their core businesses. We also lead byexample through the work of our BCG Social Impact andClimate & Sustainability practices.

Impact at Our CoreAt BCG, we bring profoundly different, innovative ways ofthinking to the world’s greatest challenges. Our goal is tocreate sustainable advantage for our clients through lasting societal impact and authentic ESG.
Rich Hutchinson, a long-standing member of BCG’s global
leadership, heads our Social Impact practice. Rich works
closely with an extensive global leadership team, including
Wendy Woods, BCG’s vice chair of Social Impact and Climate& Sustainability. They are supported by BCG’s global community of social impact practitioners more than 1,600 strong.
BCG serves our clients not just through our direct social
impact projects but by embedding social impact in our work
across industries and in our adjacent businesses, including
BCG X and BrightHouse. Social impact is also a deep part ofeach BCG office through our support of local communities.

Our social impact work drives impact and improves lives insix key areas:• Global Health. Making health care more accessible toenable healthy lives for all.
• Education. Creating quality education and skills
support for all.
• Diversity, Equity, and Inclusion. Building more
equitable and inclusive businesses and societies.
• Climate Adaptation and Resilience. Fostering a justtransition to a more sustainable world.
• Humanitarian Crisis Action. Strengthening preparedness,
immediate response, and longer-term recovery.
We achieve our greatest societal impact in collaboration
with our clients. We work in three main client-oriented
global social impact business teams:• Socially Transformative Business. We believe that
ESG transformations are vital to delivering sustainableadvantage for corporations as well as the progress needed on the UN SDGs. We help businesses find the mostmaterial ways to positively impact people and generatevalue across their operations—by building equitable
and inclusive supply chains and by creating products
and services that benefit society. This impact includes
increasing health access and equity, bridging digital
divides, and improving accessibility of financial products
and services.
• Development Impact. We focus on scaling impact inareas with the greatest need, primarily in Africa, India,
and Southeast Asia. These emerging markets have thelowest achievement of the UN SDGs, with about 85%of the world’s extreme poverty forecasted to be concentrated in sub-Saharan Africa by 2030. We partner withbilaterals, multilaterals, foundations, NGOs, and governments to accelerate the delivery of the UN SDGs.
• Government Impact. BCG has a rich history of making
a strong impact in the public sector, and our government impact teams focus on supporting governments totackle structural societal divides, enhancing equity andopportunity for those in need.

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EXPANDING OUR REACH, ENHANCING OUR IMPACT

IMPACT: Bringing Pfizer’s Innovative Portfolio of Medicines to the African
Union
Societal Problem
Half of the world’s population suffers from a health equity
gap, living without access to high-quality, safe, effective
medicines. In this context, Pfizer announced “An Accord
for a Healthier World” to provide access to innovative
medicines for people living in 45 lower-income countries.
The program has the potential to improve the health of up
to 1.2 billion people affected by deadly infectious diseases,
as well as certain cancers and inflammatory diseases.
Partner’s Challenge
The toughest challenge has been figuring out how to makethe innovative portfolio available across 45 developing
countries without defining individual go-to-market strategies.
Pfizer sought BCG’s assistance in developing a partnershipmodel that mitigates risks, meets regulatory requirements,and ensures high distribution security.
BCG’s Contribution
A large part of our work in helping Pfizer achieve this ambitious mission focused on setting up the complex program:designing the initial portfolio, deciding which geographies
to include, assessing different options for a go-to-market
model, and analyzing and securing the supply chain. We
worked on distribution, enabled sustainable prices, andconducted a regulatory analysis to initiate drug approval
processes on time while also leveraging existing registrations
as much as possible. Finally, we translated the strategy into
tangible functional and cross-functional plans.

Today, the program continues to expand. Negotiations withother developing countries are ongoing in an effort to alignon health care priorities and provide access to medicines tomillions of people. In early January 2023, Pfizer announcedplans to further expand its Accord for a Healthier World toextend access to the full portfolio of medicines and vaccines
to all eligible individuals.

45

lower-income countries
with increased access toinnovative medicines

1.2 billion

with the potential to access treatment for deadly
infectious diseases

Partner’s Impact
In the months since the program launched in May 2022, it
continues to address inequities in global health by providing medicines and vaccines. Rwanda, one of the first countries in the program, has already received medicines forcancers and infectious and inflammatory diseases. But
Pfizer also engages in a broader effort to ensure the effective distribution of the provided medicines. To secure thesupply of medications in Rwanda, the program optimized
the supply chain for the long term and deployed a global
health team to the region.

BOSTON CONSULTING GROUP

19

IMPACT: Accelerating an Industry-Leading Supplier Diversity Program
Societal Problem  
Minority and women-owned businesses face significant
inequities—including disproportionately low representation
and access to financing—that contribute to a multitrilliondollar racial wealth gap in Black and Latinx communities in
the US. For decades, major companies have aspired to help
close this gap by intentionally shifting their spending todiverse suppliers when they can. And in recent years, in partdue to broader recognition of systemic inequity, companies
have intensified their focus on supplier diversity programs
and have made unprecedented public commitments.
But challenges have arisen along the way, including
difficulties in finding diverse suppliers that are large
enough, strengthening relationships with those suppliers,and finding ways to embed a culture of intentional
inclusion within organizations.
Partner’s Challenge  
In 2020, a global technology firm made a bold public commitment to supplier diversity, including a specific focus on
supporting Black-owned businesses. The company had aplan to help it reach its financial commitment in the nearterm, but it wanted to embed the goal of supplier diversity
into its culture so that any efforts would be sustainable
and so that spending would grow over time. In addition,
the company wanted its impact to go beyond dollars andcents, to strengthen diverse businesses’ capabilities andcapacity and drive impact in diverse communities.
BCG’s Contribution  
Over the course of eight months, BCG worked side-by-side
with this company, leveraging our deep subject matter
expertise and existing external partnerships with diverse
businesses. We focused on four main areas:• Setting a foundation by bolstering program governance• Securing advocacy by, for example, activating a networkof champions across the enterprise• Fostering diverse suppliers by establishing mentorship-focused alliances to help them build scale• Focusing on global expansion, by influencing diverse
spending outside the US
Partner’s Impact   
As a result of our work together, the company has begun totake a leadership position in corporate supplier diversity. It
now has a clear line of sight toward a fivefold increase indiverse spending within five years and has secured strongorganization buy-in and integration with the firm’s culture.
The company is making industry-defining moves, pushing
the envelope of what large companies can do to support
diverse businesses and drive real impact.
20

New York - Brian, Finance

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Spotlight on Development Impact

Scaling Impact in Areas with the Greatest NeedWe have deep experience in international development
and have delivered more than 600 projects worldwide overthe past five years, building a strong track record of driving
large-scale change and on-the-ground impact. Collaboration among local BCG offices in key emerging markets
across Africa, India, and Southeast Asia, along with ourglobal expertise and capabilities, is powering these projects. Social Impact projects make up half of BCG’s business in Africa, which has been the fastest-growing systemat the firm over the past three years.
Our strong relationships across the public, private, andsocial sectors give us unique convening power. Our global
partnerships enable us to leverage new models and create
more powerful solutions. For example, over the past two
years, our team in Johannesburg has leveraged these
relationships to help South Africa define its “just transition” plan and secure more than $8 billion in climate
funding from developed nations.
Increasingly, we are integrating our analytics, AI, and digital
capabilities into our development consulting work, and weare among the few players in the development space withthis set of capabilities. For example, we have created ageographic forecasting model that uses satellite imagery toprovide a 6- to 12-month prediction of deforestation in
high-risk areas. Through this early warning system, we aim
to help authorities reduce illegal deforestation in Borneo
by 30% and to avoid over 200 megatons of CO2 emissions.
We have worked with the UK Foreign, Commonwealth &Development Office (FCDO) to deliver the £28 million
Growth Gateway program to increase trade and investment
between UK and Africa. And we were at the forefront of
resource mobilization for COVID-19 by supporting theWorld Health Organization’s ACT-Accelerator, which has
raised more than $24 billion for low- and middle-income
countries.

$8 billion

Helping to secure $8 billion in climate
funding for South Africa’s “justtransition” plan30%

Supporting a 30% reduction in illegal
deforestation in Borneo, helping to
avoid 200 megatons of CO2 emissions
BOSTON CONSULTING GROUP

Kuala Lumpur - Racheal, Recruiter
21

IMPACT: Ensuring Accessible and Inclusive Education Through Reform in India
Societal Problem

Partner’s Impact

Although India has improved access of its young people toschool education, learning outcomes remain significantly
below expectations. The Annual Status of Education Report 2017 (the most recent edition) indicates that in primary schools, only 26% of 10-year-olds could do division andthat 27% of 10- to 14-year-olds could not read texts written
for 6- to 9-year-olds. At the secondary level, dropout rates
remain high and Indian schools tend to follow a fairly
standardized curriculum with limited flexibility, choice,ability to specialize, or links to employability.

Education reform requires a long-term agenda, but the state
governments that BCG has worked with are beginning toshow gradual but robust improvement in key education
parameters. The percentage of schools with an adequate
pupil-teacher ratio has risen in each state, and metrics suchas teacher attendance show considerable growth. Several
districts in Jharkhand, Madhya Pradesh, and Odisha consistently rank among the top districts in education in the
Aspirational Districts Ranking and have improved theirscores under the central government’s education indices.

Partner’s ChallengeState governments in India are responsible for delivering
public education but are hamstrung by several structural
challenges. Most states must manage very large, unwieldy
public education systems consisting of 40,000 to 50,000
schools and about 200,000 to 300,000 teachers per state.
There is a teacher shortage of more than 30%, on average,
even if underqualified contractual teachers are counted as
fully qualified regular teachers. Compounding the difficultyof the situation is a very thin administrative and managerial workforce, with limited monitoring, accountability, andacademic expertise. As a result, most states have seen alarge shift (over 50%) in the student-age population to
private schools in recent years.

Watch the video to learn more about our partnership with
the Department of School Education in Madhya Pradesh.

BCG’s Contribution
BCG has been working with the state governments ofDelhi, Rajasthan, Jharkhand, Madhya Pradesh, and Odisha(and collaborating with national public policy think tank
NITI Aayog in the last three states) to implement systemic
reforms in education. We partnered with all except thestate of Delhi to take the following steps:• Conduct a comprehensive diagnostic of the education systems, and co-create a long-term transformation roadmap.
• Implement key systemic reforms such as school consolidation, teacher cadre restructuring, teacher rationalization,
and academic interventions focused on foundational
literacy and numeracy and digital skills.
• Institute key accountability mechanisms incorporating
management information systems and real-time, databased school system monitoring.
With the government of Delhi, BCG helped conceptualize
and implement Schools of Specialised Excellence, giving
students in grades 9 through 12 access to first-of-its-kind
specialized education in any field of their choice, under theaegis of the Delhi Board of School Education.

5 Indian states

supported through school
education transformation program

26 million
children impacted

12-14%

improvement in foundational
literacy and numeracy

22

EXPANDING OUR REACH, ENHANCING OUR IMPACT

IMPACT: Mitigating Climate Risks in Lagos
Societal Problem
The impacts of climate change are being felt across theworld, especially in developing countries that face large
threats but often have relatively few resources to help
them adapt. Adaptation and resilience efforts are needed
now to protect these countries’ people, natural ecosystems,
and economies—and BCG is working with leaders,
including governments, to drive action forward.
Partner’s Challenge
Cities around the world are experiencing increasingly
severe and frequent climate hazards. The city of Lagos,
home to the fourth-busiest port in Africa, with a local GDP
of about $85 billion, is a leading example: its population is
on track to double by 2050 to approximately 47 million,
and its geographic setting makes it particularly vulnerable
to extreme heat, heavy rainfall, and sea level rise.
BCG’s Contribution
BCG adaptation and resilience teams have been working
alongside the local government since 2021 to develop
detailed, plausible, local scenarios for climate change, andto simulate and quantify the resulting impact. We estimated that the total cost of inaction on sea level rise andextreme temperatures could total from $27 billion to $34
billion, including GDP loss and infrastructure damage. The
social impact would be massive: 700,000 people relocated,
900+ health and education centers disrupted, and sharp
increases in poverty and heat-related deaths.
The case teams then leveraged BCG’s climate analytics
approach (Climate Impact AI) to identify the areas of the citywhere the impact on critical infrastructure and on social,
natural, and economic systems would be most severe. This
led the teams to develop a localized and prioritized portfolio
of projects and to assess their social and economic impact.
These projects fall into three main categories:• Anticipate risk and improve response to crisis.
Possibilities include integrating climate risks into urban
planning and land zoning decisions, creating climate
emergency funds, and developing awareness programs
to educate vulnerable communities.
Partner’s Impact
This work was showcased at COP27. In the linked video,
Governor Babajide Sanwo-Olu discusses how this work is
helping Lagos avoid a potential cost of inaction of $30
billion or more and keep millions of people safe. Now armed
with a robust adaptation and resilience plan and a portfolio
of projects, Lagos needs to take the next step of securing
funding for the project pipeline from a mix of capitalsources—grants, low-cost public funding, domestic capital,climate-focused funds, and commercial investment—and
beginning to drive implementation. Private sector engagement will be critical, as these sources can contribute funding
to unlock returns or protect their assets and support
implementation through innovative A&R solutions.
It may be too late to prevent the crisis from coming at all,but countries still have time to respond and adapt. With
comprehensive A&R systems in place, cities like Lagos may
find themselves leading the way.

~$30 billionof cost potentially avoided throughclimate risk mitigation plan

• Flood-proof critical infrastructure to protect communities and businesses. Recommended projects
include reinforcing existing sea walls, building new sea
walls, and restoring mangrove habitats.
• Protect vulnerable population groups. Actions
include relocating vulnerable people as needed, increasing water access and quality, and retrofitting vital social
assets such as health centers and schools to ensure
continued access.

BOSTON CONSULTING GROUP

~700,000
lives and livelihoods better
protected from climate disruption

23

Spotlight on Government Impact

100,000
Working to Bridge Societal Divides
BCG works with governments around the world and often
connects private and public sectors to unlock the potentialof both. Our social impact work in this area concentrates
on helping governments tackle structural societal divides
and enhance equity and opportunity for disadvantaged
populations. Recent examples span our impact areas,
particularly humanitarian crisis action and economic
development.
For example, when the war in Ukraine broke out in February 2022, the invasion triggered one of the largest humanitarian crises since World War II, prompting a mass mobilization of 5 million refugees and causing second-ordereffects that continue to reverberate through the world
today. As in all humanitarian crises, speed was the firstpriority, with sustained and strategic support essential toachieve lasting impact.

beds for Ukrainian refugees
available within one week

€4 billion
in loans and grants dispersedin Ukraine, by EIB

BCG teams have supported Ukraine across three distinct
and vital phases of emergency aid:
• Providing Immediate Refugee Support. Our teams
worked alongside the UN High Commissioner for Refugees and the Polish government to help model refugee
flows and inform an optimal support response. BCG
colleagues across Europe mobilized quickly to create
an app to pair refugees with available shelter in theimmediate aftermath of the war’s onset. In addition, a
BCG Digital Ventures team supported betterplace.org
on #Unterkunft, which saw around 50,000 users register
100,000 beds for refugee use within a week of launch.

5 million
people’s water andelectricity supply maintained,
through EIB funding• Averting a Food Crisis. We collaborated with world
leaders to highlight the emerging food crisis and frame it
for action, working with key players at both the UN and
the World Economic Forum to identify rapid response
scenarios. We also examined the knock-on effect of increasing costs outside Ukraine, in collaboration with theWorld Food Programme.
• Rebuilding. We are part of an ongoing project with theEuropean Bureau and European Investment Bank todefine a recovery strategy, governance plan, and operating model to help rebuild Ukraine’s economy. We alsoteamed with WWF to copublish a report on sustainableeconomic recovery for the country.

24

Watch the video to learn how we worked with Save
the Children to design an innovative digital companion
for crisis-affected children and caregivers.

EXPANDING OUR REACH, ENHANCING OUR IMPACT

IMPACT: Ukraine Rebuilding Strategy for the European Investment Bank

Societal Problem
On February 24, 2022, Russian military forces enteredUkrainian territory, violating Ukraine’s national sovereignty
and multiple international agreements. This marked thestart of a full-scale invasion of Ukraine—the first large
active military confrontation in Europe since the Balkan
conflicts of the 1990s.
The invasion resulted in the displacement of more than 6
million people, and the country has already sustained over$130 billion in direct infrastructure damage. To allay themassive suffering of Ukraine’s people and its economy, theinternational community is engaged in relief and rebuilding efforts, even as combat continues.

Watch the video to learn how we supported the European
Investment Bank in setting a strategy to rebuild Ukraine.

Partner’s Challenge
Undertaking a countrywide assistance and rebuilding
strategy at the scale required in Ukraine fell beyond thetypical mandate of the European Investment Bank (EIB).
The task was complex and had strategic implications that
didn’t fit into ordinary lender-project-beneficiary frameworks. Recognizing these special circumstances, the EIB
engaged with an experienced strategy advisor to develop asuitable plan to help.
BCG’s Contribution
Aware of the immense need for reconstruction and therelatively low level of available funding, BCG prioritizedrebuilding initiatives where the EIB could have the greatest
short- and long-term impact. We defined a set of prioritization principles, ranging from ensuring the survival of
Ukraine and its people to long-term rebuilding efforts thatwould maximize economic benefits after the conflict ended. On the basis of these principles, we modeled, scored,
and ranked proposed initiatives to find the ones with thehighest potential and select them for further detailing and,ultimately, funding. We also helped coordinate approaches
among the various international organizations and put inplace a coordination framework for the main EU lenders.
Partner’s Impact
Since the start of the conflict, the EIB was able to disburse
more than €4 billion in loans and grants to the Ukrainianfederal government, Ukrainian municipalities, and crossborder efforts. Much of this money was shifted from nowdefunct initiatives to high-impact reconstruction and relief
projects, including efforts that have maintained water andelectricity supplies for over 5 million people. Read more
about the impact generated here.

BOSTON CONSULTING GROUP

Warsaw - Konrad, Consultant

25

IMPACT: Extending the Social Safety Net in Morocco
Societal Problem
For years, millions of Moroccans have suffered from awidening gap in health equity. Although the government
responded swiftly to the COVID-19 crisis, the pandemic
highlighted the importance of improving health access andstrengthening social protection programs. In this context,
the government announced a transformational sweep ofsocial reforms to be implemented over the course of three
years, from 2023 to 2025—an ambitious timeline, given
the scope of change involved.

In addition to supporting the effort to expand universal
health care, BCG’s team worked with the government tomodel scenarios for expanding child support to vulnerable
families, assessing options to extend the country’s pension
scheme and unemployment benefits, and instituting otherreforms. This social protection reform has already yielded
positive outcomes in Morocco, with more to come.

Partner’s Challenge
Undertaking a countrywide project with ramifications
affecting the lives of millions of people was never going to
be an easy task. The government needed assistance instructuring the reform and its main pilots, prioritizing
where to start, and ensuring an effective and timely
intervention.
BCG’s Contribution
Starting with expansion to universal health care coverage,
BCG teams looked at the optimal ways to restructure thereform agenda. Our analysis centered on increasing thequality of care, ensuring the financial sustainability of
programs, and taking into account interdependencies
between informational and regulatory systems. The teamprovided support to integrate a portion of Morocco’s mostvulnerable citizens (around 10 million people) into theuniversal health care scheme, which was completed in amatter of months.
Partner’s Impact

90%
of Morocco’s population now haveaccess to universal health care

~10 million
most vulnerable people now benefit
from improved health-care accessAs of December 1, 2022, more than 90% of Morocco’s
people have access to universal health care, up from 42%
just months before—one of the most rapid increases inmodern history. This has enabled millions of vulnerable
families to benefit from significant health access improvements. In addition to free access to public sector hospitals
and primary health care centers, these populations can
now obtain reimbursement for private care and prescription
drugs—a critical shift, as poor access to medication often
contributes to worsened health outcomes. Moroccans now
also have access to financial support for important procedures, such as surgeries, and specialized expensive drugs forillnesses such as cancer and HIV.

26EXPANDING OUR REACH, ENHANCING OUR IMPACT

Spotlight on Social Impact Partnerships

Businesses can play a critical role in building a moresustainable, equitable, and inclusive society if they work
together and in collaboration with governments and NGOs.
Our global partnerships are a long-standing part of our social
impact strategy and investment commitment. We seek to havesustained, ongoing working relationships with leading global
social sector organizations to accelerate impact in our areas offocus. (See Exhibit 3.) We work alongside these organizations
to help them develop their capabilities, improve their effectiveness, and better deliver on their missions.
We also drive positive change by taking an active role in
key business-led forums, such as the World Economic
Forum (WEF), World Business Council for Sustainable
Development (WBCSD), Thomson Reuters Foundation,and US Business Roundtable. We actively participated in
the UN General Assembly week, UN Global Compact Forum,
Concordia Summit, and Aspen Institute ESG Summit.

Exhibit 3 - Our Social Impact Partners

Munich - Johannes, Principal;
and Oliver, Managing Director
BOSTON CONSULTING GROUP

27

Spotlight on Local Communities
BCG also has a long-standing commitment to making a
difference in our local communities around the globe. In
addition to our global Social Impact practice work, we
support local NGOs with pro bono consulting, secondments of BCG consultants, and volunteer activities. Not
only is this the right thing to do for our communities, butalso we believe it is central to keeping our people engaged
and attuned to our values.
Our global network of local social impact leaders drives
programs in support of social sector organizations. ManyBCG offices have centers with sophisticated community
impact programming and partnerships, such as the Centerfor Canada’s Future. Most BCG offices organize community
service days, in which staff members volunteer at local
nonprofits or invite local nonprofits to their offices forfull-day strategy sessions.
Any BCG consultant can embed social impact in their BCG
career through volunteering, working on a social impact
case, or participating in our immersion and secondment
programs, which provide a more dedicated experience. All
BCGers also have access to learning materials to develop
their skills in social impact and to help support this as partof their career.

Helping Young People in Germany Gain
Access to the Labor Market
Cofounded in 2008 by BCG and the BMW Foundation,
JOBLINGE is a collaboration across Germany’s private,public, and social sectors dedicated to helping integrate
underprivileged young people into the labor market. So far,
JOBLINGE has supported more than 15,000 young people
across 30+ locations. BCG supports the program by leading
operational and development strategies to ensure further
growth and impact. For example, we helped launch
JOBLINGE Kompass, a program that helps young refugees
integrate into the labor market.

Advancing Inclusion and Equity in Local
Communities
BCG’s North America Center for Inclusion and Equity
partners with leading organizations to help build inclusive
cultures, deliver social impact, create business value, anddrive systemic change. BCG engaged with Grameen America Inc. (GAI) to enhance access to its unique microloan
program, which helps low-income women obtain capitalfunding. Systemic exclusion of Black women in the financial system is one key driver in the poverty crisis, and the
new Elevating Black Women Entrepreneurs (Elevate) initiative is a viable model for expanding financial inclusion andaddressing this gap. The program provides advanced education on loan and financing options, credit scores, budgeting, business plans, and more—all under the umbrella ofbuilding a profitable business. In less than a year, theorganization disbursed $2.1 million in loans to nearly 600
Black women entrepreneurs as part of a broader goal of
supporting 80,000 Black women entrepreneurs by 2030.

Taking Great LEAPs in Canada
BCG helped found LEAP | Pecaut Centre for Social Impact,a Canadian nonprofit that identifies and scales social
interventions that work. Over the past ten years, hundredsof BCGers in Canada have partnered with LEAP to identify,
support, and scale more than 25 social ventures. For example, BCG provided strategy and scaling support for the
Indigenous Youth Mentorship Program, a youth-led afterschool program to support children’s well-being, and SNAP,a children’s mental health organization that BCG helped
scale from 40 to over 240 locations, reaching more than
31,000 children across Canada. Since 2012, LEAP has had
a positive impact on more than 2 million of Canada’s mostvulnerable citizens and helped unlock over $500 million ineconomic impact.

Filling Educational Gaps for Ukrainian
Refugees
BCG’s Classrooms for Ukraine is a social impact projectthat originated in our Berlin office. We brought together
displaced Ukrainian refugee teachers and displaced
Ukrainian children to organize classes and activities thatwould bridge the gap until government programs were inplace. We also offered job placement guidance to adultrefugees while their children were in school. We also promoted employment opportunities within BCG itself via the
Ukraine Virtual Hub, a global platform connecting Ukrainian
refugees with employment opportunities at the firm.

28

EXPANDING OUR REACH, ENHANCING OUR IMPACT

IMPACT: Reimagining Technology Education in India
Societal Problem
Higher education is at an inflection point. As technology
accelerates at an unprecedented pace, universities around theworld are feeling pressure to reinvent themselves. Meeting
increasingly complex global challenges and SDGs requires
multidisciplinary thinkers who can transcend traditionalboundaries of engineering, physical sciences, humanities,
social sciences, and business, and solve real problems.

ambitious Digital Terrascope initiative, which will enablemassive collection, curation, and use of data for public good.
In 15 years, the university will have more than 8,000
high-quality students and 500-plus faculty members.
Plaksha will enable transformative impact through its
alumni and research centers, and it will pioneer a new
playbook for technology education for the coming decade.

Partner’s Challenge
A group of CEOs and entrepreneurs responded to thischallenge and came together to build a 21st-century university
in India that would reimagine technology education andresearch for a changing world. This effort entailed rethinking
everything about a university, including programs, research
focus, organization, and financial sustainability. It alsomeant building an institution from the ground up.
BCG’s Contribution
BCG’s team was part of the founding group that helped conceptualize and establish Plaksha University from scratch and detailed
the pillars of a new model of 21st-century higher education.

Watch the video to learn more about how we helped
to conceptualize and establish Plaksha University.

To help make that happen, BCG undertook the following actions:• We supported Plaksha through its end-to-end journey—conceptualizing the mission and plans, selecting land,
fundraising from philanthropists and marquee corporations,entering global academic partnerships, and recruiting faculty.
• Along with distinguished academic experts, we offered guidance on creating and launching pioneering interdisciplinary
academic programs at the undergraduate and graduate levels.

8,000
students to be enabled withhigh-quality technology education• We provided support, including ensuring funding, to set
up research centers focused on some of today’s biggest
challenges—clean energy and climate, digital agriculture,
water security, and digital health.
Partner’s Impact
Plaksha University is now a 50-acre campus in India with distinguished leadership and faculty from top institutions such as MIT,
Stanford, Oxford, Cornell, and the Indian Institutes of Technology.
Plaksha has more than 75 founders from across Asia, North
America, and Europe, as well as deep partnerships withinstitutions including the University of California at Berkeley,Purdue, Cornell, and the University of California at San Diego.
It has used a selective admission process to recruit a highly
meritorious founding cohort of students, and it has alreadyestablished industry-sponsored research centers that focus
on clean energy and digital agriculture. In addition, theuniversity is in advanced discussions with industry for an

BOSTON CONSULTING GROUP

4

strategic partnerships establishedwith leading education institutions

75
founders involved in opening Plaksha University

29

Spotlight on Thought Leadership
In addition to driving impact with our clients, we amplify
our impact through deeper research and by publishingcontent about our unique approaches to global challenges. In 2022, we shared myriad insightful content across
six priority topic areas correlated to the UN SDGs. We

also published several reports in collaboration withorganizations that share our dedication to positively
impacting the world, and a series of Executive Perspectives on the effects of the war in Ukraine, offering insights relevant to leaders in the public and private sectors.

A Selection of Articles Reflecting Our Social Impact
Thought Leadership in 2022
ESG and Sustainable Investing

01

02

03

04

From Compliance to
Courage in ESG

Social Responsibility: How
business leaders can turn
ESG into a competitive
edge—and a calling

Directors Can Up Their
Game on Environmental,
Social, and Governance
Issues: The BCG-INSEAD
Board ESG Pulse Check

It’s Time for Institutional
Investors to Embrace the S
in ESG

Humanitarian Crises/Food Systems

01

02

03

04

The War in Ukraine andthe Rush to Feed theWorld (co-authored by
Ertharin Cousin)

Four Futures for the Global
Food System

Closing the Food Waste
Gap

Migration Matters: A
Human Cause with a $20
Trillion Business Case (inpartnership with UN IOM)

Diversity, Equity, and Inclusion

01

02

03

04

Know Where You
Stand to Take a Standon Equity

To Fix the Labor Shortage,
Solve the Care Crisis

How Google Approaches
Supplier Diversity

The Importance of Being
Equitable in Product Design

01

02

03

04

A Human Approachto Closing the Digital
Divide (in partnershipwith Comcast)

Education as a Catalyst for
Climate Progress (in partnership with Educate Girls, The
Education Commission,
Education Outcomes Fund,and Malala Fund)Why Children Are Unsafe in
Cyberspace (in partnershipwith the Global Cybersecurity Forum)

What a Multicountry Study
Reveals About K–12
Education Models forStudents with Disabilities

01

02

03

04

Biopharma’s Rolein Achieving Health
EquityFinding the Signal:
Harnessing Artificial Intelligence and Advanced Analytics at the Intersection of
Climate and Global Health(in partnership with USAID)

How Public-Health Leaders
Can Fight the Next 		
Pandemic

The Future of Digital
Health

Education and Skilling

Global Health30

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Protecting Our Planet

Amsterdam - Thom, Associate

Contents>2,000 climate and sustainability~30% reduction in BCG’s carbon footprint

impact cases delivered since 2020

compared to our 2018 baseline~30%>2,000

Scope 1 & 2
Scope 3

~583

360

~410

2020

2018

780
2021

980

2022

2022

100%

$2B

renewable electricity used
to power our oﬃces
of our operations certiﬁed
as CarbonNeutral®

>$500 million>$500 million invested in climate andsustainability initiatives so far this decade1

1Investments include both cash and in-kind support for climate and sustainability initiatives.
BOSTON CONSULTING GROUP

31

2022 Highlights

2022 in Numbers

Climate and sustainability consulting is the fastestgrowing topic across all areas of BCG’s business.
In 2022, we deepened our client support acrossall sectors and geographies, totaling close to 1,000
climate and sustainability projects with more than
500 organizations.

thought leadership publications focused on
various climate and sustainability topics

90+$16/tCO e

2022 per metric ton 2

our blended carbon price in

BCG was the leading consultancy engaged in
shaping global climate action, working acrosssectors and geographies. For the second year in arow, we were the exclusive consulting partner to
COP, and we supported the UN High-Level Climate
Action Champions.

94%

reduction in Scope 1 and 2 emissions
intensity since 2018 (tCO2e per FTE)

BCG was recognized on the CDP Climate A Listfor the second consecutive year. CDP is widely
recognized as the gold standard of corporate
climate transparency. The CDP Climate A List
acknowledges companies that are leading the way
on action to cut emissions, mitigate climate risks,
and advance the low-carbon economy.

60%

reduction in Scope 3 business travelemissions intensity since 2018 (tCO2e per FTE)

We acquired Quantis, a sustainability consulting
firm, to further strengthen our climate andsustainability expertise and help us lead the global
transformation toward a new planetary economy
in which business gives nature a seat at the table.

32

EXPANDING OUR REACH, ENHANCING OUR IMPACT

2022 was a year of great turmoil economically,­ olitically—and also environmentally. Continuing to compbat climate change and the broader planetary crisis remains a top priority for BCG. Despite the urgency of theclimate crisis, countries are still falling short in taking
action to reduce global emissions. In fact, 2022 emissions
are forecasted to be the highest in recorded history.5 Presented with this context, BCG is partnering with businesses
and governments to help them transform and build a moresustainable and resilient world. This is the right move notjust for the good of the planet but also for the long-termsustainability of our clients. We are committed to shaping
the global agenda through our climate partnerships andleading by example by staying on track on our own net-zerotransformation.

Climate and Sustainability as Our North Star
Extreme environmental events in 2022 exposed thedevastating effects of our changing climate: the warmest
summer on record in Europe, heavy rainfalls causing floods
and landslides in Asia, extreme waves of cold in the US, andmore. Undeniably, our planet is changing rapidly, and we areinsufficiently prepared. We face the double difficulty of curbing
our planetary footprint to minimize additional disruptions
while adapting to the consequences of our already alteredenvironment. The challenges extend to other critical risks
to our planetary health, such as waste management, air
pollution, ocean plastics, and biodiversity loss.
Despite these challenges, there were signs of hope. COP27,
the UN Climate Change Conference held in November 2022
in Sharm El Sheikh, Egypt, endorsed the first global plan
focused on adaptation and resilience to climate change,
known as the Sharm El Sheikh Adaptation Agenda, anddelivered an important agreement on a climate-related
loss and damage fund, a key aim of the COP27 presidency.
At COP15, the UN Biodiversity Conference held in December 2022 in Montreal, countries from around the world
adopted “30x30,” which aims to protect 30% of the planet’s
land and water by 2030. The private sector continues to bea major contributor to progress on these fronts, delivering
on pledges and driving climate action along value chains.

5.

As a leading management consulting firm with global reachand intellectual diversity that spans every significant industry and function, we want to engage with all players thatare willing and motivated to make a difference. Our aim isto put climate and sustainability at the top of all clients’
agendas, starting with those that have the largest footprints, in both the private and public sectors. By doing so,
we can achieve positive impact on a planetary scale. Today,
we work with about two-thirds of our highest-emittingclients on climate and sustainability projects, and we arecommitted to increasing this number to 80% in 2023. In
addition, we work with many governments around theworld on their strategies for carbon emission mitigationand for climate change adaptation and resilience.
We recognize the complexity of this work and the importance of ensuring that we have a positive influence on theplanet and that we align our efforts with the goals andspirit of the Paris Agreement. We have established clear
internal policies and processes to assess the climate projects we take on. We have identified areas of work that wewill not do, and we flag other high-risk topics that an internal BCG committee must assess on a case-by-case basis.
We also understand the need to balance environmental
concerns, such as emissions and pollution reduction, withsocial considerations, such as a just transition, gender equity,
energy access, and economic development, and we recognizethat a regionally differentiated approach is often necessary.
We will continue to refine our policies and approach as we
deepen our engagement. By treating our climate andsustainability agenda as a North Star for all our engagements, we can help organizations work toward a sustainable future for themselves while also helping to secure thefuture of our planet.

Source: Global Carbon Project: 2022 Global Carbon Budget.

BOSTON CONSULTING GROUP

33

Our Team and Expertise
In 2022, BCG set up a dedicated Climate & Sustainability
practice, which functions in collaboration with the Social
Impact practice and all other BCG practices. Hubertus
Meinecke, the global leader of this practice, works closelywith an extensive global leadership team, including Rich
Lesser, BCG’s global chair, to advance our work on thiscrucial agenda.
The breadth of work related to protecting our planet extends across six topic areas:• Climate and sustainability transformation• Decarbonization solutions• Sustainable food and nature solutions• Sustainable operations• Sustainable finance and investing• Green tech, innovation, and growth
Issues related to climate and sustainability continue to
evolve. Although the science is clear, the solutions sometimes aren’t. With this in mind, we launched a Climate &Sustainability Academy at BCG—a program to help us
train our staff and clients with the latest developments andinsights across the full spectrum of planetary challenges.
The Academy rests on five pillars, ranging from raisingawareness of climate and sustainability issues across ourentire staff to highly prestigious training programs for our
deepest experts. We highlight three initiatives below.

Stewardship Program

More than 130 BCGers have participated in this intensive,
80-hour training program developed and launched inpartnership with the Judge Business School at the University of Cambridge and the Climate School at Columbia
University, and taught by leading professors. The program
involves one week of classes on campus and 40 hours ofvirtual learning covering a broad range of climate andsustainability topics. We plan to add a third university in
the Asia-Pacific region in 2023 and run both a spring program and a fall program, thereby tripling participation.

Accelerator ProgramThis 16-hour foundational training program is designed toeducate the wider BCG population, as well as our clients,on the critical topics of climate and sustainability. This
program combines asynchronous self-paced modules andlive virtual masterclasses run by internal and external
experts. Following a pilot version of the course conducted in
2022, 3,000 BCGers will participate in this training in 2023.

Climate & Sustainability Learning Hub

This online learning hub houses more than 20 climate andsustainability learning journeys with content developed
and curated by BCG experts covering a broad range ofrelated topics. This hub’s goal is to provide easy-to-digest,
on-demand resources for our staff to increase their skills
on relevant climate and sustainability topics for their casework or to provide additional learning opportunities. In
2023, we will offer credentials on many of these topics.
Beyond increasing the size of our own team, we are proud tohave acquired Quantis, a pioneering environmental sustainability consultancy with more than 250 consultants. For morethan 15 years, Quantis has focused on supporting organizations in achieving sustainable business transformations.

1,500+BCG experts work on climate
and sustainability topics acrossindustries and geographies

130
BCGers participated in an
intensive 80-hour climate
stewardship program34

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Accelerating Climate and Sustainability
Impact with Corporate Clients
Climate and sustainability consulting continues to be oneof the fastest-growing capabilities at BCG; the number ofprojects has increased sixfold since 2019. We supportclients in all sectors and geographies, pursuing a total ofnearly 1,000 climate and sustainability projects with morethan 500 organizations in 2022. We expect demand for our
climate and sustainability consulting services to continue
to grow across clients, sectors, and geographies—but also
to deepen in terms of the types of engagements we havewith clients, moving from setting ambitions to implementing action plans for footprint reduction.
Our work spans all aspects of the sustainability transformation, including setting and developing ambitions, making operations sustainable, and growing new sustainablebusinesses. As discussed in our research, we believe that
AI can help solve the climate crisis. We continue to develop
proprietary AI-powered tools such as CO2 AI, Circelligence,and Climate Impact AI that enable our clients to accurately measure their carbon footprint, strategically reduce
emissions throughout their value chain, embed circular
economy principles to drive more value from fewer raw
materials, and facilitate socioeconomic optimization ofclimate adaptation investments.

Recognizing that no single company can solve this crisis alone,
we invest in partnerships with other leading organizations. In
2022, we launched a partnership with SAP to enable ourclients to holistically monitor and report on ESG progress.
BCG is now a recognized leader in helping businesses
define and deliver on their net-zero and nature-­positive
aspirations, as demonstrated by our Gold Accreditationfrom CDP, our participation in the SBTN Referral Program,and our membership in the IFRS Sustainability Alliance.
In 2022, we also launched our lighthouse program, in which
we partner with leading organizations globally on theirsustainability transformation. For example, we are partneringwith leading industrial players such as JSW Steel on theirdecarbonization journey and support the growth of green
energy with leading companies like China Light & Power.
In 2020, we made a $400 million commitment to advanceclimate action with clients and partners. We have alreadyinvested more than $500 million in climate action thisdecade, driven by the rapid growth outlined above. Recognizing this strong progress, we have increased our commitment to $2 billion by 2030, which we will use to broaden
and deepen our climate partnerships, advance thought
leadership, and expand BCG’s capabilities.6$2 billion commitment to advance climate action this decade

$2B

6.

>$500 million(since 2020)

Investments include both cash and in-kind support.

BOSTON CONSULTING GROUP

35

Advancing Sustainable Food Systems
The world’s population passed 8 billion in 2022. The challenge of feeding this growing population comes with a setof environmental consequences. Food production anddistribution affect all of the largest environmental concerns.
For example, one-quarter of the world’s greenhouse gas
emissions result from food production, and the industry isa primary driver of biodiversity loss. Like a stable climate,biodiversity is a crucial aspect of a resilient and functional
planet, including the ability of healthy ecosystems to store
carbon and to supply resources.

We work with NGOs, such as Naturschutzbund Deutschland(NABU—the German partner organization of BirdLife
International), and government organizations to define
transformation pathways for a regenerative agrifood
system. And we work with agriculture pioneers such as
Agrifirm and financiers like Blue Horizon to understandand support the development of alternative proteins.
We engage holistically with players at every link of the foodvalue chain to combat climate change and biodiversity loss
for a sustainable and resilient food supply:

Exhibit 4 - How BCG Is Advancing Sustainable Food Systems
Retailers
We are working with
Woolworths on initiatives
that support its surplus foodredistribution objectives.

Equipment
We work with agriculture equipment manufacturers
to reduce emissions across the full life cycle of theirproducts and to identify new business opportunities,
such as tractor electriﬁcation.

Farms

Consumer goods

We work with dairy brand owners and dairy
farms such as Mengniu, China Shengmu,
and China Modern Dairy to develop a
net-zero strategy and devise ways to reduce
both CO2 and methane emissions.

We support global consumer packaged
goods companies by, for example,
contributing to Nestlé’s roadmap toachieve a 50% carbon reduction by 2030.

Fertilizer
We work with fertilizer producers such as OCP
to support a sustainability transformation poweredby green tech and business model innovation.

Distributors
We partner with major food distributors
to reduce Scope 3 emissions and identify
new value creation opportunities.

Source: BCG analysis.

Thought Leadership Publications

Agribusiness Can Lead theShift to Sustainable Farming

36

Four Futures for the
Global Food System

The Untapped Climate
Opportunity in
Alternative Proteins

EXPANDING OUR REACH, ENHANCING OUR IMPACT

IMPACT: Decarbonizing Dairy Value Chains

Partner’s Challenge
The dairy industry faces many obstacles on the road tolowering its environmental footprint, including direct andindirect emissions of various greenhouse gases (GHGs) fromfeed production, and methane and nitrous oxide emissions
from livestock manure. Methane, a highly potent GHG, is anatural by-product of the digestion process. Mengniu, aleading Chinese manufacturer of dairy products, sought toimplement a strategy for its value chain that would addressthese emissions and enable it to reach net zero by 2050.
For this purpose, the company needed to procure tools for
accurately tracking emissions, implement best-practicesustainable farming principles, and find ways to collaborate,
communicate, and train employees along the value chain.
BCG’s Contribution
BCG worked closely with the company and its main suppliers, China Modern Dairy and China Shengmu, to embedsustainability at all layers of the company.
Operationally, we helped Mengniu develop low-emission
farms, working with the company’s partners to get a holistic view of current output through a carbon emissions
inventory, spot tests to collect missing data, and comparative analysis of emissions structures. We identified key
reduction levers and simulated carbon emission curves,and then developed multiple initiatives that we turned into
detailed implementation plans. In one example, China
Shengmu now converts deserts, where its farms are located, into forests and grasslands for feed cultivation.
On the management side, we facilitated leadership discussions of priority initiatives on the basis of cost-benefit
analysis. We helped the company upskill its workforce anddelivered models to ensure effective governance, giving
farm managers and key employees the capacity to carryout carbon audits independently.
Partner’s Impact
The program put Mengniu, China Modern Dairy, and China
Shengmu on a path to reduce the amount of methane
arising from their operations and to decarbonize theirfarming activities and achieve net zero by 2050.

BOSTON CONSULTING GROUP

37

Helping Mobility Accelerate Climate Action
2022 marked the end of the global pandemic for most of theworld’s population, and with it the reopening of borders and a
return to travel for many. Global CO2e emissions decreased by
6% during the pandemic, and the mobility sector was disproportionately impacted—down 10%.7 In 2022, however, mobility
sector emissions rebounded quickly and have returned
pre-pandemic levels.8 Although transportation accounts for a
relatively small share of global emissions today, it is projected
to grow in importance over time. And while some decarbonization technologies such as flight electrification and hydrogen-powered shipping are still being developed, many solutions—for example, light-vehicle electrification, sustainable andsynthetic fuels, and shared economy technologies—are readyto be deployed at scale to decarbonize mobility. It is therefore
critical to move fast, both for our planet and for industry players.
We recognize that transforming the mobility sector is toocomplex for any single player to accomplish. We therefore
partner with organizations across the mobility sector andall parts of their value chains.

Exhibit 5 - How BCG Is Helping Mobility Accelerate Climate Action
Manufacturing

Infrastructure

We worked with Schaeﬄer Group, a
global automotive and industrial supplier,to turn its ESG and climate ambitions
into tangible targets and actions. And
we’ve helped various auto manufacturers
improve the transparency of theiremissions footprint and deﬁne their
net-zero roadmaps.

We are partnering with the UK
government to catalyze the rollout
of EV charging infrastructure. We
are supporting players such as
Autostrade per l'Italia to build
their ESG foundations and meetstakeholders’ expectations, as
demonstrated by top ratings fromvarious agencies. We conducted a
deep dive on decarbonization
strategies and climate resiliencein the face of more frequent
extreme weather events.

Materials

Circularity

We have worked with metals
miners to reduce emissions
and set targets. We supported
JSW Steel in decarbonizing its
largest steel plant, setting it ona path to cut 9 million tons of
CO2 from just one location by
2030. (See more details on JSW
Steel on page 39.)

We are working on improving the circularity ofvehicles and their components by increasing therecycling rate and extending the lifespans ofmaterials. For example, we are supporting
American Tire Distributors’ plans to develop
recycling value chains and Sibanye-Stillwater’s
eﬀorts to develop a European supply of low-carbon
battery metals (virgin and recycled material).

Source: BCG analysis.

Thought Leadership

What the Shift to ZeroEmission Vehicles Means forCommercial Transportation
7.

Source: Carbon Brief.

8.

Source: IMF, 2022.

38

Six Pitfalls to Avoid When
Mobilizing for Sustainability

Greener Steel, Greener
Mining?

EXPANDING OUR REACH, ENHANCING OUR IMPACT

IMPACT: Large-Scale Decarbonization Efforts at JSW Steel
Partner’s Challenge
JSW Steel, a leading steel manufacturer in India and one of
the fastest-growing companies in the world, has set an
ambitious sustainability agenda with clear commitmentsaligned to the country’s nationally determined contributions to climate change abatement as defined by the Paris
Accord. Specifically, the company aims to reduce its CO2
emissions by more than 42% by 2030 throughout its production value chain, without compromising its growthambitions. This is a challenging task for any steel company,
but especially so in emerging markets such as India, given
their heavy reliance on ore-based ironmaking (using blast
furnaces with coking coal input) as opposed to using scrap forsteelmaking as companies in many developed economies do.
JSW Steel has raised a sustainability linked bond to help
accelerate timelines to achieve its aspirations. Consistent
with its intention to be a leader in the decarbonization of
the steel industry and in the transparency of its actions,JSW Steel participates in the CDP climate change disclosure program. It is the only manufacturing company from
India, and one of three steel companies globally, to achieve
an “A” (Leadership) rating, the highest possible.

• Design and implement climate “lighthouse” projects.
We helped design and prioritize more than 100 shop-­level climate initiatives, which have now reached various
stages of implementation. These initiatives incorporate
several best-in-class solutions, while also focusing onpractices that can be implemented using existing technology to quickly gain efficiency.
• Support change management and governance.
We helped support organization-wide change
management by actively training more than 35 climate
champions, running workshops for more than 500
employees, and driving employee sensitization to
the importance of sustainability.
Partner’s Impact
The program is helping JSW Steel redefine and achieve its
CO2 emissions reduction ambitions. The company is now on
track to cut 9 million tons of CO2 from just one location by
2030 through the identified initiatives. The company now
aims to replicate this program across all its other locations
to drive even larger at-scale reductions in carbon emissions.

BCG’s Contribution
In 2022, JSW Steel began its partnership with BCG to
pursue its decarbonization agenda at its largest integrated
steel plant, in Vijaynagar, in the state of Karnataka, India.
The partnership covers three major priorities:• Integrate decarbonization into plant performance.
We helped create a granular view of shop- and material-­level CO2 contributions, along with a comprehensivescorecard to track the top 35 KPIs that have an impact onemissions and a method for integrating that scorecard
into plant performance review systems. We deployed
digital tools and dashboards for enhanced transparency
on emissions metrics and for seamless tracking andreporting of identified initiatives and levers for emission
reductions.

BOSTON CONSULTING GROUP

9 million tons
Helping JSW steel cut 9 million
tons of CO2 by 2030

39

IMPACT: Roadmap to Net Zero for a Leading Global Truck Manufacturer
Partner’s Challenge
A leading global manufacturer of trucks and commercial
vehicles committed to building a net-zero supply chain by
2040. The CO2 reduction plan had not yet been operationalized, and emissions measurement was mostly manual,making it difficult to implement and account for reductions.
The company’s procurement sustainability department
wanted to set concrete emissions reduction targets andestablish an IT solution to increase the transparency andmanagement of the company’s Scope 3 upstream footprint.
BCG’s Contribution
BCG supported the client by applying a holistic transformation approach to its procurement process. We helped thecompany define a CO2 reduction pathway through 2040
based on commodity-specific CO2 reduction levers. The
final CO2 reduction repository included 50 actionable
levers and ways to engage with suppliers, as documented
in a procurement handbook and tested with suppliers in aseries of workshops. In addition, the company deployed
BCG’s CO2 AI footprint calculator, providing transparency
on CO2 for all commodities and purchased parts, including
giving all buyers the ability to view and manage the footprints of their purchasing categories and update specificemission factors.
Partner’s Impact
Through our work, the client has a clear view of andconfidence about the actions required to build a net-zero
supply chain by 2040.

40

EXPANDING OUR REACH, ENHANCING OUR IMPACTClimate Risk, Adaptation, and Resilience
Climate change and its effects are no longer just a potential risk for companies, governments, and societies. Environmental disasters such as floods, wildfires, extreme
heatwaves, heavy rainfall, and droughts already affectmillions of people, businesses, economies, and natural
ecosystems around the world. Global leaders must address
the climate hazards that will affect us all. To do so, governments and companies will have to develop local adaptation and resilience strategies to address the complexity ofthe problem and preserve human life. BCG tackles thischallenge holistically, in cooperation with our clients, bymoving climate-risk assessment, adaptation, and resilienceto the top of corporate and government agendas.

BCG Thought Leadership
1. Localize Your Climate Adaptation Plans
2. How South African Mining Can Address Climate Change
Challenges
3. Make Climate Adaptation a Top Business Priority

Supporting the Sharm el-Sheikh Adaptation
AgendaAlthough climate action is accelerating, mitigation alone is
not enough. Global action on the topic of adaptation andresilience is urgent. To respond to this challenge, theCOP27 Presidency, in partnership with the UN Climate
Change High-Level Champions and the Marrakech Partnership, launched the Sharm El Sheikh Adaptation Agenda.
This agenda identifies 30 adaptation outcomes needed by2030 across five key impact systems—food security andagriculture, water and nature, human settlements, oceans
and coastal areas, and infrastructure—with planning andfinance as critical cross-cutting enablers.
BCG collaborated with the UN Climate Change High-Level
Champions to conduct research and analyses on what it
will take to achieve these outcomes by 2030. We publishedthe resulting work as a series of four coauthored reports,
launched at COP27. (See the links to the reports below.)
The reports explain the context and challenges acrosssystems, and they detail the global actions needed toachieve the Sharm El Sheikh Adaptation Agenda. Together
with the High-Level Champions, we presented these insights
at COP27, providing a platform to rally action from public,
private, and civil sectors and institutionalize adaptation andresilience as a critical pillar of the global climate agenda.
The BCG teams built on their global experience supporting
the adaptation and resilience efforts of public and private
sector clients and complemented these insights with additional research, expert interviews, and close collaboration
with the High-Level Champions. We will continue to bringour partners the latest insights and thinking to help shape
the global agenda on adaptation and resilience.

2030 Adaptation
Outcomes for­Adaptation &­Resilience Planning

BOSTON CONSULTING GROUP

2030 Adaptation
Outcomes for­Adaptation &­Resilience Finance2030 Adaptation
Outcomes for Food
& Agriculture2030 Adaptation
Outcomes for­Human Settlements

41

IMPACT: Planning for Adaptation and Resilience in Southeast Asia

Partner’s Challenge
Southeast Asian countries are severely vulnerable to climate hazards, such as sea-level rise and cyclones, and areamong the countries most affected by extreme weather
events. In some of these countries, the majority of the
population lives in low-lying coastal areas with many citydwellers inhabit informal, impermanent settlements.
Many countries in the region have lost large parts of theirforests over the past 75 years.
BCG’s Contribution
BCG partnered with a Southeast Asian government andthe UK Foreign Commonwealth and Development Office(FCDO) to create a framework and a roadmap to enable thedevelopment of a full national adaptation and resilienceplan, guided by best practices from UN standards and bestin-class principles defined by BCG to identify key gaps.
We began with an integrated, analytics-powered approachto responding to sea-level rise in one province. With BCG’sproprietary Climate Impact AI tool, we conducted a pilot
and quantified the future effects of sea-level rise on people,
ecosystems, and economies at a granular level. We foundthat the impact of not taking action would include thedisplacement of 100,000 people, at a cost of about $3.2
billion, resulting in an 8% decrease in provincial GDP and
potential damage to about 50% of the province’s wetlands.
Impact
The work has empowered decision makers with the insights
needed to develop a robust adaptation plan, prioritize
adaptation and resilience projects optimized for socio­
economic ROI, and mobilize funding using evidence-based
analysis. The results also revealed an opportunity to leverage public-­private partnerships with local conglomerates
and multinationals whose assets are also vulnerable. These
partnerships could provide funding for adaptation projects
that will protect both private assets and local communities.
The next step is for the government to roll out the approach across the country, developing a portfolio of adaptation and resilience projects, and engaging stakeholders andinvestors in their funding and implementation.

42

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Shaping the Global Agenda
BCG has continued to help shape the global response to the climate crisis,
broadening and deepening our engagement with leading climate actors:

COP27
BCG assisted the Egyptian government in preparing and organizing the UN
Climate Change Conference (COP27) in Sharm El Sheikh. As part of our engagement, BCG supported Dr. Mahmoud Mohieldin and Nigel Topping, the UN
High-Level Climate Action Champions, in their Race to Zero and Race to Resilience campaigns. BCG also substantially contributed to the definition of the
Sharm El Sheikh Adaptation Agenda & Adaptation Outcomes by 2030.
World Economic ForumBCG supported various climate initiatives at the World Economic Forum, including the Net-Zero Challenge, Mission Possible Platform, Natural Climate
Solutions Alliance, and Global Future Council on Net Zero Transition. In 2022,
Rich Lesser, global chair of BCG, continued to act as chief advisor to the WEF’s
Alliance of CEO Climate Leaders. We also continued to partner with the WEF
and the US State Department to expand the First Movers Coalition, a group of
forward-thinking companies ready to jump-start global demand for criticalemerging climate solutions, helping to mobilize the necessary investments anddraw down costs.
CDP
BCG established a worldwide exclusive strategic partnership to accelerate thedecarbonization of supply chains. Together, we developed the CO2 AI ProductEcosystem, the reference platform for product-level climate and environment
data sharing. Beyond the platform, BCG is supporting CDP on its most pressing strategic questions.

EDCI
We supported the private equity community in its efforts to drive convergencearound meaningful ESG metrics and generate comparable, performance-based
ESG data. To enable this process, we helped launch the ESG Data Convergence
Initiative (EDCI). The initiative has seen remarkable growth in its inaugural
year, with more than 250 private equity firms representing $25 trillion of assets
joining it and over 2,000 portfolio companies participating in the inaugural
benchmark.

WWF
2022 was the ten-year anniversary of BCG’s long-standing partnership with theWorld Wide Fund for Nature (WWF). Jointly, we provided insights on various
topics and co-published reports on deforestation, plastics pollution, and net-­
zero pathways.

We also continued to work with leading climate and sustainability actors suchas the SBTi, SBTN, VCMI, Breakthrough Energy Catalyst, and WBCSD.

BOSTON CONSULTING GROUP

43

Advancing the Climate Action Agenda with
COP27
Climate action requires radical collaboration across businesses, investors, governments, and society. In November
2022, Egypt hosted thousands of representatives fromthese groups at the 27th Conference of the Parties to the
UN Framework Convention on Climate Change (COP27) inSharm El Sheikh. COP27 made real progress in advancing
the agenda of the Global South, including agreeing to establish a first-ever loss and damage financial facility in response
to long-time demands and elevating concerns related toadaptation, water, food, and a just transition. For our viewpoint on the progress made at COP27 and the priorities forthe years ahead, see COP27: An Inside Perspective.
BCG’s senior delegation of climate experts attended theconference, as did a large number of leaders from aroundthe world. Overall, COP27 saw a marked shift in emphasis
from pledges to action. For example, Egypt announced a$15 billion Nexus on Water, Food and Energy package of

mitigation, adaptation, and development projects, with anovel joint approach on all three topics. And the Just
Energy Transition Partnership, launched with $20 billion ininitial funding, will help Indonesia pursue renewable energy over fossil fuels, with the potential for additional agreements with Vietnam, Senegal, and India to follow.
Despite progress, climate change remains this century’s
defining challenge. At COP28 in 2023, leaders will deliver
the first worldwide assessment—the “global stocktake”—
of progress toward limiting global warming and addressing
its impact. The world will be found wanting. This global
stocktake will also have to identify urgently needed solutions to close gaps in mitigation, adaptation, and financeby 2030 to get the world on track to meet the Paris Agreement temperature goal. Subsequent COPs must makecritical progress in raising ambition, implementing effective
policies and regulations, and delivering impact throughprojects at pace and scale.

What Doing the Work Means

A Key Demand Center

Sustainability Is a Team Sport

Adaptation and Resilience Needs
Business Support

What Gets Measured Gets
­Financed

Our Best Bet for Progress

Advancing Climate Action Through Thought
Leadership
The world faces complex climate and sustainability problems that require holistic approaches in cross-sector collaborations. BCG’s environmental research provides a fact
base for climate transformation. We released 90 thought
leadership publications focused on various climate andenvironment topics, including climate technology innovations, AI solutions, sustainable consumer behavior, sustainability as a strategic advantage, decarbonization of various
industries, and circularity. We also released episodes of“The So What from BCG” podcast series on the topic ofsustainability to prepare business leaders and executives
for the future. We have highlighted some of these key
thought leadership pieces below.

44

90
thought leadership publications
focused on various climate andsustainability topics

EXPANDING OUR REACH, ENHANCING OUR IMPACT

A Selection of Articles Reflecting Our Climate andEnvironment Thought Leadership in 2022

01

02

03

04

Technology Is the Fast
Track to Net ZeroAI Is Essential for Solving
the Climate Crisis

Better Climate
Financing Depends
on Better Data

Deep Tech Powers
New Net-ZeroBusiness Models

05

06

07

08

Environmental Risks
Go Far Beyond
Climate Change

Five Ways CEOs Can
Take On the Climate
Challenge

From Compliance to
Courage in ESG

How to Build a
High-Impact
Sustainability Alliance

09

10

11

12

New Data Shows How
Private Equity Stacks
Up on ESG

Nudging Consumers
Toward Sustainability

An Inflection Point for
the Energy Transition

The Challenges of a
Sustainability
Transformation

13

14

15

16

The Net-Zero Insurer

Actions Speak Louder
Than Words in
Delivering Net Zero

Closing the Food Waste
Gap

Securing Valuable
Resources for a
Sustainable Future

Climate and Sustainability Partnership Reports

01

02

03

Ukraine: A Sustainable
Economic Recovery for
People and Nature

Most Innovative
Companies 2022: Are You
Ready for Green Growth?

BCG-WEF Project: The
Net-Zero Challenge

Podcast Episodes on the Topic of Climate and Sustainability

01

02

03

The So What from BCG:
Climate Adaptation and
the Cost of Inaction

The So What from BCG:Can Our Green Future
Also Be Fair?

The So What from
BCG: What COP27
Means for Africa

BOSTON CONSULTING GROUP

45

Our Commitment to Net-Zero Climate Impact
At BCG, we have boldly committed to achieving net-zeroclimate impact by 2030 and thereafter to become climate
positive, removing more carbon from the atmosphere than
we emit each year. (See Exhibit 6.)

We recognize that the requirements and expectations for
credible net-zero strategies will continue to evolve with
scientific and technological developments and ongoingstakeholder engagement. As we progress on this journey, we
will learn and adapt our approach through collaboration
with experts, NGOs, clients, and other key stakeholders.

We follow the GHG mitigation hierarchy by first avoiding
and reducing emissions within our value chain, and thencompensating for and neutralizing our remaining emissions. We have set validated near-term science-basedtargets, which aim to cut our GHG emissions intensity inhalf by 2025. Our targets are aligned with the most ambitious goal of the Paris Agreement: to limit global temperature rise to 1.5°C above preindustrial levels. We have already achieved a significant reduction in our Scope 1 andScope 2 emissions and have established a clear decarbonization plan for our Scope 3 business travel emissions.

Our net-zero program is governed by the Global Internal
Sustainability Steering Committee and led by BCG’s chiefsustainability officer, David Webb, who was appointed tothis position in 2022. For more details, see the Governancesection of this report (page 11).

In addition to reducing our GHG emissions, since 2018 wehave purchased and retired a volume of independently
verified carbon credits equivalent to our remaining unabatedemissions and maintained CarbonNeutral® company certification.9 As part of our journey toward net-zero climate impact,
we are transitioning our carbon credit portfolio to 100% carbon
dioxide removal (CDR) credits by 2030. Our goals are to support
high-quality nature-based solutions and to help pioneer themost promising technological solutions, such as direct-air
capture and storage.

• Taskforce on Climate-Related Financial Disclosure(TCFD) Index

In alignment with best practice such as WWF’s Blueprint,
we have quantified and publicly communicated the pricewe expect to pay to reduce, avoid, and remove emissions as
we work toward net-zero.10 We expect to pay a blended
carbon price of $35 per metric ton in 2025, rising to approximately $80 per metric ton by 2030. In 2022, our blended carbon price was $16 per metric ton, an increase versus$11 per metric ton in 2021.

9.

Additional Information• BCG’s Net-Zero Strategy• Environmental Responsibility Statement• CDP Climate Disclosure$16
our blended carbon price in 2022
per metric ton

Our CarbonNeutral® company certification covers our full reported Scope 1, Scope 2, and Scope 3 GHG inventory, excluding upstream well-totank emissions for air travel, which are included only in our business travel emissions target. The credits we currently purchase are a mix of
avoided-emissions projects (such as preventing deforestation), which aim to keep additional carbon from entering the atmosphere, and removal
projects (such as reforestation and direct-air capture), which remove CO2 directly from the atmosphere.

10. Source: World Wide Fund for Nature (WWF) report: Beyond Science-Based Targets: A Blueprint For Corporate Action On Climate And Nature.

46

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Exhibit 6 - Our Net-Zero Roadmap
MeasureWe measure, analyze, verify,
and report our climate
impact annually.

ReduceWe have set science-basedtargets to reduce emissions
intensity along our value chain.

2018 emissions baseline

31

KtCO2eAbsolute Scope 1
and Scope 2
emissions in 2018

553

KtCO2eAbsolute Scope 3
emissions in 20182025 science-based targets

92%

per FTE

Reduction in Scope
1 and Scope 2
emissions by 2025

Reduction in Scope 3

48.5% business travel
per FTEvs. 2018 baseline

Remove2030 net-zero commitments

We address our remaining
emissions by purchasing
high-quality carbon credits.

100%

Improve

Stakeholders (non-exhaustive)

emissions by 2025

vs. 2018 baseline

Remaining emissions removed withhigh-impact carbon credits

We engage experts, NGOs, andstandard setters to continually
improve our approach.

Source: BCG analysis.
Note: KtCO2e = metric kilotons of carbon dioxide equivalent; FTE = full-time equivalent employee.

Net-Zero Strategy Launch VideoBOSTON CONSULTING GROUP

47

Measuring Our Climate Impact

Our Scope 3 emissions boundary includes business travel—our largest source of emissions—as well as purchased
goods and services, capital goods, employee commuting, andother smaller emissions sources. Within our reported GHG
inventory, for air travel emissions, we measure and include
the climate impact of GHG emissions from the combustion offuel, as well as the impact of non-GHG sources that have aradiative-forcing impact.12 (See Exhibit 7.)

We have established a global carbon accounting system inaccordance with the GHG Protocol Corporate Standard, andwe independently verify our emissions against the ISO
14064-3 standard.11 We report emissions in metric kilotonsof carbon dioxide equivalent (KtCO2e). A detailed descriptionof our greenhouse gas reporting methodology and Scope 3
reporting boundary is available in the Appendix (page 86).
Relative to our 2018 baseline, our 2022 emissions remained 30% lower in absolute terms and 54% lower on aper person intensity basis. In comparison with our absoluteemissions to 2021, our emissions in 2022 increased, due
mainly to the return of business travel in 2022 following
the easing of COVID-19 travel restrictions.

Exhibit 7 - BCG’s Greenhouse Gas Emissions
Data in KtCO2e

–31%
584
5
25

572
6
0
406
3
0

553

566
177
4
0

151
3
0

174

2018

2019

403

148

2020

2021

2022

COVID-19 restrictions imposed
Scope 1

Scope 2

Scope 3

Source: BCG analysis.
Note: KtCO2e = metric kilotons of carbon dioxide equivalent.

11. We take an operational control approach to consolidating our carbon emissions inventory.
12. Although CO2 is a significant and crucially long-lived pollutant from aviation, it represents only about 50% of the total warming caused by flying.
Other emissions from aviation, such as nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM), as well as indirect factors suchas the formation of contrails and clouds, contribute to effective radiative forcing (ERF). Following best practice, we account for the non-GHG
climate impact of aviation by multiplying the CO2 impact by 1.9, effectively doubling our flight emissions. We include non-GHG warming effects
within our full reported GHG boundary. But in accordance with the Science Based Targets initiative (SBTi) aviation sector guidance, we exclude
them from our business travel target boundary. For the same travel target, we also include upstream well-to-tank emissions from the combustionof aviation fuel; however we do not include these in the full reported GHG inventory above. Please see Table 1 on page 87 of the Appendix for asummary of our full GHG inventory and target boundaries.

48

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Evolving Our Approach to Business Travel
To realize our net-zero ambition, we focus primarily on
reducing our largest source of emissions: business travel.
We have committed to cutting business travel emissions by
48.5% per FTE by 2025 versus our 2018 baseline year, making it one of the most ambitious such targets in our industry.
Our business travel emissions intensity in 2022 was 60%
lower than in our 2018 baseline year. Of this reduction,
approximately 50% came through changes in the way wetravel, 9% through aviation efficiency gains, and 1% fromthe purchase of sustainable aviation fuel (SAF) in 2022.13(See Exhibit 8.)
We are thoughtfully evolving our operating model to reduce business travel emissions, while maintaining our
excellence in client service and seeking to enhance our
employee value propositions. To meet our target, membersof a global network of change agents—composed of managing directors and partners across every region of BCG—
have created emissions reduction plans appropriate for theirgeographic and business context and are working toward
operationalizing the changes across the organization.

Accelerating the Adoption of Hybrid and Flexible
Teaming Models. We began developing new team travel
norms prior to the global pandemic and have since finetuned these models. We now actively engage our clients todefine an intentional co-location and travel plan for our
projects, helping to reduce emissions, improve productivity,and increase flexibility. For colleagues who travel frequently
to client offices, we provide an option to stay over the
weekend if they would like to, in order to reduce the number of trips taken during the project.
Evolving Our Approach to Internal Meetings andEvents. In addition to changing our approach to client
travel, we are committed to lowering our travel emissions
for internal meetings and events. For example, our learningand development team has introduced a number of operational changes that aim to reduce travel emissions by 50%
per learner. We have also adopted a new model for someof our global meetings, changing the format and locations
to reduce emissions per attendee by approximately 40%. To
support event organizers, we launched a new tool thatenables them to quickly identify the meeting location thatwill generate the smallest quantity of emissions, based on
the attendee’s location. The tool also offers greener meeting and event guidelines, including practical recommendations to reduce emissions during events.

Exhibit 8 - Scope 3 Business Travel Science-Based Target
Reduce Scope 3 business travel emissions by 48.5% per FTE by 2025 (against 2018 baseline year)
2019

2021

2020

2022

9%
20

40
Reductionversus 2018 (%)

48.5%
60

60%

80

82%
87%
COVID-19 restrictions imposed

100
Reduction target for 2025

Progress toward target

Source: BCG analysis.
Note: FTE = full-time equivalent employee.

13. The aviation efficiency gains are reflected in the annual changes to the emissions factors we use to calculate our climate impact.

BOSTON CONSULTING GROUP

49

Creating Transparency and Accountability for Travel
Emissions. We have established internal reporting andmonitoring tools to provide transparency into how eachregion and business unit is progressing toward the GHG
emissions target. Further, we have deployed dashboards toenable all of our managing directors, partners, and project
leaders, to track their individual and project travel emissions and understand how this compares to their peers’
emissions and their historical travel patterns. We also
developed a new carbon budgeting feature that enables
users to quickly calculate the emissions savings fromchanging the way they travel for their projects.
Changing the Way We Travel. Besides reducing thenumber of trips we take, we look for ways to increase theproportion of trips taken by train instead of airplane—for
example, in Europe, where taking the train is often a viable
alternative. We have set the train as a default choice in our
travel booking tool for viable routes, and our offices aretracking and incentivizing this shift in behavior.
Supporting the Use of SAF. We are exploring other ways
to further reduce our climate impact, such as by purchasing SAF for flights taken by BCGers. High-integrity SAF is
the most viable in-sector aviation decarbonization levercurrently available, delivering up to 85% lower life-cycle
CO2 emissions than conventional jet fuel. Today, SAF volumes are quite small—less than 0.03% of global aviationfuel demand—and early adopters like BCG are required tohelp scale and advance high-integrity solutions. We areproud of the actions we have taken in 2022 to help advance the SAF market:• BCG signed new SAF partnerships directly with Qantas
and Air Canada by participating in Air Canada’s Leave
Less Travel Program, and we continued to deepen
our engagement with our existing partners, including­SkyNRG, Neste, and United Airlines.
• We supported the development of WEF’s Sustainable
Aviation Fuel Certificate (SAFc) Emissions Accounting
and Reporting Guidelines, published in October 2022.
This guidance aims to standardize the measurement
and reporting of SAF reductions, and it has informed
our own approach. We have enhanced our own selection
criteria to reflect the evolution of best practice.14

Decarbonizing Our Direct Operations
Although our direct energy and electricity (Scope 1 andScope 2) emissions are small relative to our Scope 3 GHG
inventory, we have taken decisive action to reduce thoseemissions. We have set a science-based target to reduce
Scope 1 and Scope 2 emissions by 92% per FTE by 2025
versus our 2018 baseline year.
In 2022, our Scope 1 and Scope 2 emissions intensity was
94% lower than in our 2018 baseline year. (See Exhibit 9.)
Of this reduction, approximately 82% came through shifting to renewable sources of electricity to power our offices.
We achieved this by continuing to transition our directelectricity supply to renewable tariffs, wherever feasible to
do so, and by buying unbundled Energy Attribute Certificates to reach 100% renewable electricity for the remainder.16 A further 12% reduction came from reducing consumption of natural gas within our offices for heating andfrom shifting our leased car fleet toward hybrid and electricvehicles. Hybrid and electric vehicles now represent around
40% of our leased cars, and since 2018 we have increased
the number of fully electric vehicles by over 400%, withseveral BCG offices committing to renewing only electricleases from 2022 onward. Having surpassed our target for2025 already, we are now working to maintain this level as
we focus on driving down other emissions sources.

Making Our Offices More Sustainable

Our offices are a key component of our environmental footprint. By improving energy efficiency, switching to renewable power, and minimizing our waste and our water consumption, we are making our offices more sustainable
worldwide. We target the highest environmental standards
for new offices and major renovations, with more than 40of our offices now holding a formal green building certification, such as LEED Platinum or BREEAM. To support
sustainable decisions across all BCG offices, we partneredwith a specialist sustainability firm to develop BCG’s green
office selection and fit-out standards, which cover a wide
range of environmental topics, from energy and water use
to greener office furniture selection.

• We helped to develop the Sustainable Aviation Buyers
Alliance (SABA) Sustainability Framework for SAF andparticipated in the first joint SAF certificate pilot purchase agreement through SABA.15

14. In particular, we require that SAF be verified against certification standards, currently including RSB CORSIA and ISCC CORSIA certification as
the preferred standard, or RSB Global, RSB EU, ISCC Plus, or ISCC EU as an acceptable standard in the short term.
15. SAF is a relatively new product, and the accounting and reporting frameworks are still being developed. For this reporting period, we claim
emissions reductions from the use of SAF purchases by aligning with the World Economic Forum Sustainable Aviation Fuel Certificate (SAFc)
Emissions Accounting and Reporting Guidelines.
16. We seek to align the Energy Attribute Certificates we purchase as closely as possible to the country and year of electricity consumption.

50

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Closing the Loop on Waste

Across our offices and operations, we aim to embed theprinciples of the waste hierarchy (avoid, reduce, reuse, andrecycle). For example, we avoid and reduce paper consumption by applying paperless office principles, and weincrease rates of general office waste recycling by installing
recycling facilities for all major waste streams across all
offices to the extent possible. For our most material waste
streams, such as electronic waste, we partner with specialist companies that reuse components to extend their life
cycle and ensure proper recycling for all nonreusable
components. In light our relatively low volumes of waste
generation, we do not currently report total waste volumes
or set formal targets on this topic.

Engaging Our Employees in Our Climate Journey

We educate all employees and raise their awareness ofclimate issues, as well as providing tangible actions thatthey can take to contribute to BCG’s net-zero commitment.
To complement the broad range of online and in-person
learning events that we host, we support local action
through our global network of green teams, which has
grown to more than 1,300 active members. Distributed
across more than 80 BCG offices, the teams focus on
designing and implementing initiatives to reduce ourenvironmental impact at the local office level.

Exhibit 9 - Scope 1 and Scope 2 Science-Based Target
Reduce Scope 1 and Scope 2 emissions by 92% per FTE by 2025 (against 2018 baseline year)
2019

2020

2021

89%
92%

92%

2022

20

40
Reductionversus 2018 (%)
60

80

86%

100
Reduction target for 2025

94%

Progress toward target

Source: BCG analysis.
Note: FTE = full-time equivalent employee.

BOSTON CONSULTING GROUP

51

BCG’s Flagship Sustainable Office inWashington DC
We selected and fit out BCG’s sustainable flagship office inWashington to comply with the firm’s green office standards,
a framework developed in collaboration with a specialist
sustainability consulting firm to maximize our offices’ sustainability performance and impact across their full life cycle.
Using the standards, we defined an ambitious set of sustainability targets, including a 38% reduction in water consumption and a 20% reduction in lighting power density, comparedwith an average office. We targeted having an EnergyStar
rating for at least 90% of the equipment and appliances in theoffice, and we partnered with a specialist B-Corp furnituresupplier to source climate-neutral furniture from local independent traders. A large central staircase encourages movement around the office and reduces elevator use, while a bikestorage area, bikeshare subsidy program, and close public
transport links facilitate greener commuting options. We also
carefully considered the office’s accessibility—leading us to
introduce motion activated access controls, smooth flooringtransitions, and braille signage.

2022 in Numbers

100%

renewable electricity used to
power our offices since 201940+

BCG offices with a green
building certification

The building base was designed and constructed inaccordance with the DC Green Code, and the interior designand construction is currently being assessed for LEED
standard certification.

100%of employees received
training materials on the
climate and environment topic

80+

oﬃce green teams areactive around the world

1,300+

x52

colleagues are BCG green
team members

EXPANDING OUR REACH, ENHANCING OUR IMPACTNeutralizing Our Remaining Climate Impact
We are investing in a portfolio of high-quality carbon
abatement solutions on the voluntary carbon market.
We are pursuing three objectives:• Increase the proportion of CDR credits in our portfolio,transitioning to a net-zero portfolio composed entirely of
CDR credits by 2030, and continue to support high-quality
avoided emissions credits as we make this transition.
• Continue to increase our focus on quality and integrity
across the portfolio.

At the same time, we seek to maintain a balance in volume,purchasing and retiring a volume of independently verified
carbon credits equivalent to our reported footprint, andthereby achieving CarbonNeutral® company certification.17
We believe that being transparent about the type, quality,and blended cost of the credits we purchase is an important step in helping to scale high-quality solutions. That’s
why we report on the progress we’ve made on those fronts
each year. See Exhibit 10 for a detailed breakdowns of ourcarbon credit portfolio.18• Work to advance the most promising nascent methodologies and technologies, including the most promising
CDR to capture and store carbon permanently.

2022 Progress
Expanded CDR Credit Volumes and Share of Portfolio
In 2022, we expanded the CDR share of our portfolio to 48%, up from 44%
in 2021. We have diversified our impact by supporting three new types ofpioneering CDR projects:
Mangroves Restoration (Delta Blue Carbon project, Pakistan). Mangroves
can store up to five times as much carbon as tropical forests. In addition toremoving CO2 from the atmosphere, this project is improving livelihoods inlocal communities and protecting ecosystems within a region that has been
identified as among the 40 most biologically rich in the world.

Soil Carbon Sequestration (Carbon by Indigo project, US). We partneredwith Indigo Ag, the first company to produce verified, agriculture-based carbon
credits at scale, to support farmers across 5.5 million acres of US farmland intheir transition toward more sustainable farming practices. Indigo’s second
credit issuance, projected for early 2023, will further demonstrate how changes
resulting from sequestering carbon increase soil quality and crop yields while
supporting farming livelihoods.
Biochar (Biochar project by NetZero, Cameroon). This project stabilizes atmospheric carbon in agricultural soils for hundreds of years. The technology extracts the carbon captured in crop residues through a pyrolysis process (heating
at high temperature in oxygen-deprived conditions). The resulting product—solid carbon called biochar—is extremely stable and can be used as a soil
amendment, achieving long-term carbon removal and improving soil healthand crop productivity.

17. To maintain CarbonNeutral® company certification, we purchase and retire a volume of independently verified carbon credits equivalent toour full reported Scope 1, Scope 2, and Scope 3 GHG inventory (as enumerated in Exhibit 10. Our current portfolio is a mix of avoided emissions
credits and CO2 removal credits.
18. We partner with a carbon market specialist to help align our purchases with emerging best practices and ensure that the projects meet our strict
selection criteria. All of the carbon credits we purchased and retired in 2022 were independently verified against the leading voluntary standards(including the Gold Standard and VCS), which have been approved by the International Carbon Reduction and Offset Alliance.

BOSTON CONSULTING GROUP

53

Increased Our Focus on the Integrity
and Quality of Credits

The lack of transparency within the voluntary carbon market makes it difficult for buyers to differentiate between
high- and low-quality projects, with buyer’s decisions often
based on pricing. In 2022, to support the emergence of atruly efficient carbon market in which project quality andpricing correlate, we worked with Sylvera, which offers an
independent carbon credit rating and monitoring platform.
This helped us gain greater insight into our past and current portfolio, informed forward-looking purchases, andensured that project quality was at the forefront of ourdecision-making process in supporting carbon projects.
During the year, our Internal Sustainability team participated in several working groups and pilot testing processes—
including with VCMI, GHG Protocol, SBTi, and IC-VCM—to
enable the emergence of an efficient, high-integrity voluntary carbon market.

Helped to Advance Promising NascentTechnologies and Methodologies

In 2022, we joined the NextGen CDR Facility as one of fivefounding buyers, bringing together climate leaders fromacross industries and regions. The target blended price of$200 per metric ton sends a strong demand signal thatcompanies are keen to support the scale-up of innovative
high-quality removals today. To send a similarly strong
demand signal to advance the most promising nascentclimate solutions, we continued our support of the WEF’s
First Movers Coalition and the Breakthrough Energy Catalyst program, as well as working directly with project developers such as Climeworks to help define its people strategy,
alongside our existing carbon removal purchase agreement.
To support higher-quality nature-based solutions, we formally signed on as participants in Emergent’s LEAF coalition in
2022 and selected the target jurisdictions where we will
focus our impact. The coalition aims to halt deforestation
by financing large-scale tropical forest protection. By applying a jurisdictional approach, this approach reduces therisk that deforestation will occur elsewhere within thejurisdiction, yielding a higher-integrity carbon credit.

54

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Exhibit 10 - Understanding Our 2022 Carbon Credit Portfolio Mix
2022 Portfolio Summary
Volume of credits
purchased and retired

Number of projects
supported

406

9

KtCO2eAverage Sylvera rating(Sylvera has rated 51% of BCG’s credits1)

A(100% A rated
or above )2022 Portfolio Breakdowns
Project type2021 Portfolio

52%

48%

56%

Avoided-emissions projects

44%

Carbon dioxide removal (CDR) projects

Technology type
52%

0.3%
4%

43%

0%
REDD+

Aﬀorestation/reforestation

Mangroves

Soil carbon sequestration

Biochar

UN Sustainable Development Goal alignment
02

01

Numberofprojects

NO
POVERTYZERO
HUNGER

4

6

04

03
GOOD HEALTH
AND WELL-BEING4QUALITYEDUCATION

305
GENDEREQUALITY

4

08

09

AFFORDABLE
AND CLEAN
ENERGYDECENT WORKAND ECONOMICGROWTH

INDUSTRY,INNOVATION AND
INFRASTRUCTURE

5

7

06
CLEAN WATER
AND SANITATION

5

07

3

10

11

REDUCEDINEQUALITIESSUSTAINABLE
CITIES ANDCOMMUNITIES

3

0

12
RESPONSIBLE
CONSUMPTION
AND PRODUCTION

413
CLIMATEACTION

914LIFE
BELOW WATER

2

15
LIFE
ON LAND

8

17

16
PEACE, JUSTICEAND STRONG
INSTITUTIONSPARTNERSHIPFOR THE GOALS

0

1

Source: BCG analysis.
Note: KtCO2e = metric kilotons of carbon dioxide equivalent; REDD+ = Reducing emissions from deforestation and forest degradation.
1 Sylvera portfolio coverage and average project ratings are calculated at the time of CarbonNeutral® company certification.

BOSTON CONSULTING GROUP

55

Empowering Our People

Brussels - BCG case teamContents

Our global headcount grew to over 30,000~30K

headcount>20%

Women represent 46% of
our global headcount
44%

46%

2020

2022

growthWomen (headcount)

46% of our consulting team and 51% of our newhires in the US are from racial or ethnic minorities

46%

56

100% of employees have access tohealth and well-being support services

51%

EXPANDING OUR REACH, ENHANCING OUR IMPACT

2022 Highlights

2022 in Numbers

We launched our new recruiting campaign:“Beyond is where we begin.” By sharing authentic
voices of BCGers, this campaign offers an external
articulation of the promises we make to ourpeople, communicating the reasons to join, stay at,
and grow at BCG.

people joined BCG in 2022, 45% ofwhom were women

10,000>78%
People Surveyof employees responded to the annual

We continue to deliver on our commitment toadvance racial equity in the US. We have deployed
more than $70 million to deliver equity-focused
projects with both public and private partners andhave donated more than $900,000 to Black equityfocused organizations.

20%

growth in the global Pride@BCG diversity
affinity network

We launched AccessAbility@BCG as a central
pillar of our global diversity, equity, andinclusion program. We baselined the reasonableaccommodations that we have in place across all
BCG offices and developed clear guidelines for
our HR, IT, and real estate teams to best support
colleagues with disabilities.

>30,000

learning experience

employees participated in a

We maintained our leadership position on
numerous external benchmarking programs,
including Consulting magazine’s “Best Firms to
Work For” list, Comparably’s Best Consulting
Companies for diversity and global culture, and
Vault’s top three employers.

BOSTON CONSULTING GROUP

57

W

e aim to be the employer of choice by offering an
unparalleled employee experience and by creating an environment that allows our people tothrive personally and professionally. Our mission is to
unlock the potential of diversity, equity and inclusion at
BCG. We believe that diverse teams with inclusive andequitable work practices strengthen our organization,
allowing us to better support our clients and advancejustice, dignity and belonging.

Attracting the Best and Most Diverse Talent
Our success depends on our ability to attract and retain
intellectually curious, diverse, and accomplished individuals. We invest considerable time in finding those who will
best contribute to our clients and our culture by recruiting
executives, experienced professionals, and new graduatesfrom around the world.

2022 Highlights
For the first time in a decade, we ran extensive internaland external research reaching more than 2.2 million
people across the globe to understand what the best people in consulting and digital fields look for in an employer,
what their perceptions of BCG are, and why people join
and stay at our company. Leveraging this insight, welaunched our new recruiting campaign in September 2022,with the tagline “Beyond is where we begin.” Through theauthentic voices of BCGers, this campaign offers an external articulation of our internal promise to our people, andit communicates to our candidates reasons to join, stay at,
and grow at BCG.

Our talent goals:• To be the premier employer of choice by offering an
unparalleled, innovative employee experience• To optimize BCG’s growth and ability to deliver long-lastingclient impact by anticipating and adapting to changes inclient needs• To bring diverse perspectives to our clients’ biggest
challenges• To recruit as one firm with local flexibility, considering
market- and business-based differences in approaches
and hiring pools
To ensure that we continue to attract the best, most diverse talent, we launched a new recruiting campaign,
introduced new online preparation resources, and delivered a more personalized experience on our careers site.
We also provided ongoing unconscious-bias training to ourinterviewers and recruiters. We outline the recruiting process to our candidates at the beginning of the journey andcontinually provide feedback along the way. We also givecandidates opportunities to learn about our culture
through experience programs and by meeting BCG colleagues, helping them make an informed decision.
Our virtual experience and internship programs, for instance, offer students from many disciplines and backgrounds the chance to experience BCG firsthand. In 2022,
we added new modules to our virtual experience programs,
including one for parents and caregivers who are returning
to work after a career break. Our proposition of doing
challenging, impactful work in a highly supportive environment has helped establish us as an employer of choice.

58

Watch this video to discover “Beyond is where we begin.”

Against the backdrop of the war in Ukraine, we launched avirtual hub for Ukrainian talent in April, making it easierfor Ukrainians to search and apply for a full spectrum ofroles across BCG. We also maintained a strong focus on
our climate and sustainability goals, and on the experienceof our candidates and recruiters, with an enhanced hybrid
recruiting experience and expanded use of digital tools.
This has enabled us to reduce recruiting travel emissions
by more than 50% versus our 2018 baseline levels, while also
streamlining our recruitment process and further customizing
the candidates’ journey. We rolled out our candidate engagement app, which personalizes and digitizes a candidate’s
recruiting journey, to 70% of our offices globally. And all BCG
offices globally have now adopted our interview preparationand online assessment tool, launched in 2021. Combining
these new tools with improvements to our careers site has
led to a significant increase in the number of people clicking
to apply for a role.

EXPANDING OUR REACH, ENHANCING OUR IMPACTA number of external benchmarking programs recognized
our award-winning approach. BCG ranked in Consulting
magazine’s “Best Firms to Work For” list, based on a survey of more than 12,000 consultants across over 300 firms
covering all major industries. Comparably recognized BCG
as one of the Best Consulting Companies for diversity,
global culture, career growth, and happiness. Forbes andStatista named BCG as one of the World’s Top Female
Friendly companies. And Vault included the firm as one of
the top three employers for the third time.

2022 in Numbers~10,000
people joined BCG, 45%
of whom were women

270,000+
prospective candidates
enrolled in our virtual
experience program (anincrease of more than
20% over last year)

Doubledthe conversion rateof people clicking toapply for roles on our
career site in 2022

BOSTON CONSULTING GROUP

59

Working at BCG
People are BCG’s most important asset, and the firm has
always been committed to creating a best-in-class employee experience. We aim to build an environment where our
employees do not just succeed but thrive. We support ouremployees personally and professionally by enabling new
ways of working to ensure that they can prosper in a virtualand hybrid work environment, as well as by enhancing ourprograms to support well-being and work-life balance.
BCG empowers the career development of its people withexpansive programs of learning and development, digital
support systems for growth and feedback, and a dynamic
global network of employees and BCG alumni engaging invarious forums. Each person at BCG brings unique perspectives and ideas, and our goal is to develop every individual’s extraordinary talent—to be the best place forthem to thrive and grow.
The experience that BCG offers its employees is comprehensive and multidimensional.
Performance and Development Opportunities. Each
employee can take advantage of a personalized performanceand strengths-based development plan. Whether throughproject-specific feedback or an individual development plan,
employees have access to robust career and learning discussions and tools that will enable them to grow and develop.
Managers across the globe provide timely feedback and acareer review at least once each year.
Robust Employee Dialogue. We encourage thorough dialogue between our people and BCG’s leadership, and weengage our employees formally at the office, regional, andglobal level through staff meetings and town halls. We also
have a number of local works councils across the firm withwhich local BCG leaders engage regularly. At the core of all
this is a robust culture across BCG of participation andactive listening, including the involvement of many of ouremployees in key committees and decision making.
Listening to Our People. We conduct a People Surveythat gives employees an opportunity to provide feedbackon their experiences. Because we conduct the survey annually, we can track progress over time and ensure that weare acting on the feedback received. We recently supplemented the People Survey with an additional, shorter
survey that enables us to quickly take the pulse of employees on topics that may be top of mind for them and toreact to any concerns or suggestions raised. Another forum
we leverage is our Employee Input Panel, an opt-in networkthat gives participating staff opportunities to provide feedback
on projects and initiatives that will affect their experience.

Teaming at BCG. We continue to pioneer new models tofoster sustainable teaming across BCG. Through coaching,leadership activation, and engagement at scale, BCG supports teams in adopting behaviors and best practices thatthe firm has codified through leadership alignment, stable
team rhythms, psychological safety, and a growth mindset.
About 100 BCG teaming coaches work with case teams at
any given time and embed teaming best practices in learning journeys across all seniority levels. The impact is clear:around 90% of all case teams report that they experience
psychological safety, and about 85% say they have opportunities to learn and grow.19
Flexibility. We also understand that our employees needflexibility and adaptability in the workplace, even as they
respond to the needs of our clients and business. In 2022,
we launched our Flex@BCG global framework, which describes different ways of working flexibly across the firmand enables employees to navigate the options available tothem. In addition to being eligible for paid parental andmilitary leave, employees can request time off for personalmatters or for a particular passion; all employees acrossthe firm have a right to request part-time work. And wecontinue to add new tools and programs and pilot newtechnologies to increase day-to-day flexibility.
Career Mobility. Various job mobility opportunities giveour people special motivation and options for growth.
BCG’s Global Career Framework encourages growththrough exploration across topics, practices, and locations.
We also curate personalized career development plans forour employees, including learning sessions, project opportunities, and coaching. We support employee development
by offering structured mobility programs and by postingvacancies on our internal jobs board, as well as sharing
openings with alumni and posting them externally.
Affiliation and Fun. Part of our commitment to providing
a best-in-class employee experience involves providing
opportunities to have fun and meet colleagues outside
normal business interactions. In 2022, as market conditions allowed, we resumed in-person events such as holiday parties, retreats, and community service days, giving
our staff opportunities to connect and build and renew
friendships. Teams are finding creative ways to balance theneed to be together with the importance of managing andreducing carbon emissions.

19. September 2022 Pulse Check Survey.

60

EXPANDING OUR REACH, ENHANCING OUR IMPACT

2022 Highlights
Our purpose is to unlock the potential of those who advance the world. We can do that only when we fully expand
and realize our own potential, which we enable throughour value proposition, or People Promise. In 2022, welaunched multiple projects to address the evolving needsof our people. The goal of each of these projects was toreinforce and augment the offering according to the threepillars of our People Promise: meaning and impact, people
and culture, and growth and development. Highlights
include the following:• We accelerated efforts to improve day-to-day sustainability and team effectiveness through our ways of working.

2022 in Numbers>78%of employees responded to theannual People Survey, for thefifth consecutive year

• We increased our emphasis on information transparency
and employee empowerment to support career journeys,
including upgrading our internal job posting platform,
proactively sharing open roles, and introducing individual development plans and development dashboards.
• We invested in developing skills and expertise throughour continuous learning journeys.
• We rolled out the Flex@BCG framework, enabling
employees to navigate the flexible opportunities
available to them and giving all employees the rightto request part-time work.

Ensuring Fair and Equitable Pay

100%of employees received anannual performance review
and have access topersonalized careerdevelopment opportunities20

Ensuring fair and equitable pay for employees is part of
BCG’s commitment to an inclusive workplace that fosters
diverse perspectives. For example, in the US, as a memberof Employers for Pay Equity, BCG signs an annual pledge topromote transparency, accountability, and equal pay.
Our compensation function manages BCG’s global pay
practices, using tools and frameworks to support pay equity and operate without bias or discrimination. We develop
salary and incentive structures based on role type, skill set,level of contribution, and local market pay data. Our pay
levels are highly competitive and greatly exceed minimum
wage requirements, including in the US, where the hourly
pay of all regular employees exceeds $20 per hour. To
reinforce our commitment to equitable pay, we review
compensation annually, taking into account factors such as
an individual’s proficiency, experience, and level of performance,
as well as the location of the role. Although we apply more
rigorous standards than are legally required, we also comply
with all applicable pay equity laws and regulations, such as
the Gender Pay Gap, the reporting requirement in the UK.

100%of employees have access tohealth and well-being services
through our Wellbeing@BCG
framework

20. All employees with sufficient reviewable time within thecalendar year receive annual reviews.

BOSTON CONSULTING GROUP

61

Diversity, Equity, and Inclusion

Activities to Drive Change

Diversity, equity, and inclusion (DEI) are core BCG’s values—­
and we don’t compromise on these values, no matter where
we operate. Our success depends on employing passionate, open-minded people who bring with them a range ofexpertise and experience and represent, among otherdimensions, all genders, gender identities, gender expressions, sexual orientations, races and ethnicities, physicalabilities, and neurodiversities. This diversity enables us toprovide fresh perspectives, challenge established norms,
and devise innovative solutions. It makes us stronger andmore successful in everything we do—and it is a moral
imperative firm-wide.

Globally our internal DEI activities include mandatoryanti-harassment and cultural awareness training, as well as
a DEI learning journey that begins with entry-level rolesand continues as our employees progress.

We are committed to nurturing an inclusive and equitablefirm to provide all our employees with opportunities toflourish and succeed. In 2022, we performed a flagshipresearch study on inclusion, and it demonstrated that an
inclusive work environment leads to higher levels of happiness and well-being among employees, along with improved retention. According to this research, leadershipcommitment is a crucial driver of feelings of inclusion, andin 2022 BCG’s leadership continued to invest significantly
in our commitment to DEI, including naming a chief diversity officer and appointing six women (one-third of thetotal) to the Executive Committee. Women represent almost one-quarter of our firm’s leadership and 46% of ourglobal staff. In addition, we continue to maintain equal
promotion and retention rates for men and women acrossthe firm. We have also made great strides in our racial andethnic representation, with racial or ethnic minorities
making up 46% of the total consulting team, 51% of thefirm’s new hires, and 30% of the firm’s leadership in the
US. Our research found that another important driver ofinclusion in the workplace is a bias-free environment. In
that context, we track and address any reported instancesof harassment or discrimination of any kind and have a
global ombudsperson process in place to raise concerns.
(See page 78 for more details.)

We run many initiatives to promote DEI at BCG, startingwith ensuring that we hire diverse talent by using structured protocols aimed at eliminating bias from the recruiting process. We also offer MBA fellowships at several business schools, providing mentorship, training workshops,
summer learning programs, and monetary awards for women, LGBTQ+ people, and racial and ethnic minority candidates to increase the diversity of our recruitment pool.
We hold regional and local conferences and affiliation
events for members of our global diversity affinity networks, including Women@BCG, Pride@BCG, and AccessAbility@BCG. And through our Women@BCG program, we
also offer tailored talent development, mentoring, andsponsorship opportunities, including these:• Segment of One. In this program, senior BCG leadershipmonitors the progress of every woman at BCG to provide
support through her evolving career and life stages.
• Leadership Pairings. Aspiring women leaders can pursue
mentorship opportunities, connecting with mentors at themost senior levels of BCG.
• Leadership Development Programs. These programs
offer women coaching on their communication and leadership skills, and encourage a broad range of leadership styles.

Beyond our high-level commitment to DEI practices internally at BCG, we are committed to driving and shaping DEI
in society more broadly. We believe that to bring about
meaningful change, we have a collective obligation to
tackle and solve these complex challenges, and we haveconfidence that together we can succeed. We therefore
invest substantially in research and thought leadershipthat advances DEI at BCG, in our client organizations, andthroughout society. From this work, we continue to learn
how to create a more diverse, equitable, and inclusive
culture that helps BCG thrive and helps us support ourclients in a rapidly changing world. In 2022, we launched a
new equity and inclusion client-service offering as part ofour Social Impact practice, helping clients realize enhanced value creation and competitive advantage by creating more equitable and inclusive workplaces.

62

EXPANDING OUR REACH, ENHANCING OUR IMPACT

DEI Governance and Organization
In 2022, we furthered our commitment to DEI by appointing
Nadjia Yousif as BCG’s chief diversity officer (CDO) to drive
our agenda and be the voice for DEI both to BCG’s mostsenior leadership and externally. Our CDO reports directlyto BCG’s chief executive officer and has driven an
ambitious agenda with three near-term priorities:
1. Enhance leadership accountability for DEI objectives
and outcomes.
2. Systematically support inclusion across all of BCG.
3. Shape the global societal DEI agenda.
A dedicated global DEI team is responsible for collecting
and analyzing DEI data, driving accountability, managing
thought leadership, and leading our global diversity affinity
networks along with regional and local teams composed ofsenior leadership and dedicated managers. Every function
within the global People Team at BCG—such as recruiting,learning and development, and career development—­
includes a DEI scope, and every member of those functional
teams works closely with the global and regional DEI teams.

Global Diversity Affinity Networks
In addition, regional diversity affinity networks provide valuable affiliation and programming for our employees, including Veterans@BCG, AsianDiversity@BCG, Black+Latinx@
BCG, Indigenous@BCG, Colorful@BCG, Bold@BCG, Peopleof Colour@BCG, Kulcha & Ethnicity@BCG, First-Generation
Network@BCG, and Family@BCG.

BOSTON CONSULTING GROUP

63

Women@BCG

Pride@BCG

Women@BCG seeks to increase the number, success, andsatisfaction of women at the firm. Across the globe, we
focus on recruiting and retaining women in all our practiceareas and businesses. For example, we invest in increasing
gender diversity in our digital businesses and in upskilling
digital competencies for women consultants. To help close
gender gaps in STEM (science, technology, engineering,and mathematics) fields, we’ve partnered with the international not-for-profit Girls Who Code. Together, we have built
a training program to successfully prepare young womenand girls for technical interviews, with the goal of increasing the number of women who enter and advance in tech.
In addition, we partnered with the Women’s Forum topublish a report exploring how to unlock women’s leadership through STEM skills.

Pride@BCG is BCG’s global diversity affinity network for
LGBTQ+ employees and allies. Our efforts were recognizedexternally, with Open For Business naming BCG as a Global Equality Champion, and with the Human Rights Campaign Corporate Equality Index awarding BCG a perfectscore of 100%.

In 2022, our Women@BCG agenda continued to makestrong gains. We have achieved our aspirations, with women representing 46% of our overall headcount and 41% of
new joiners in entry-level associate and consultant roles,
while maintaining equal retention rates for men and women globally on both consulting and non-client-facing teams.
Over the past decade, the number of women managing
directors and partners has grown at three times the rate of
the number of men managing directors and partners.

We made significant progress on all six pillars of ourPride@BCG strategy in 2022:
1. Recruiting Diverse Talent. We participate in, sponsor,
and organize leading LGBTQ+ recruiting conferences
around the world. For example, we were the lead sponsors for EUROUT and ROMBA, and we participated insimilar events in India, Japan, and other countries. We
also launched a fellowship for LGBTQ+ individuals atseveral MBA programs.
2. Safety and Security. We made headway in expanding
our membership and formally launching Pride@BCG
in countries around the world where being LGBTQ+ canpose a safety risk. In addition, we expanded our benefits
and policies to make them more LGBTQ+ inclusive invarious countries. In the US, for example, we conducted a comprehensive audit that led to an expansion of
benefits, including coverage for gender-affirming healthcare and family support benefits such as for adoption
and surrogacy.

2022 in Numbers
2022

2021

Women to represent over 40% of employees globally

46%

45%

Women to represent over 40% of entry-level consulting hires

41%

41%

Equal promotion and retention rates for women and men==

Women also represent...
33% of our Executive Committee

24% of our firm’s leadership21

21. Leadership includes managing directors and partners and other senior leadership roles across BCG.

64EXPANDING OUR REACH, ENHANCING OUR IMPACT

3. Inclusive Culture and Psychological Safety. We
hosted numerous presentations, panel discussions, andexternal speakers from the LGBTQ+ community whoshared their experiences and insights to help make the
day-to-day experience of our members more inclusive.
4. Affiliation and Community. We resumed in-person
events and successfully held Pride conferences acrossthe three BCG regions to support affiliation and community development.
5. Professional and Personal Development. We offer
our members a bespoke mentorship program that weenhanced this year by piloting a software solution to
streamline and improve mentor-mentee matchings.

2022 in Numbers+20%
growth in the global Pride@
BCG diversity affinity network

6. Societal Impact. We completed the research for the
next edition of our flagship Out@Work Barometer, aregular thought leadership report. Our theme for thisedition is the experience of trans, nonbinary, and gender-­nonconforming individuals in the workplace.

AccessAbility@BCG
2022 has been a historic year for AccessAbility@BCG, as it
formally became a pillar of the global DEI program. Ourpriority, beyond establishing the global community, was tobaseline the reasonable accommodations we have in placeacross all BCG offices and to develop guidelines for local
HR teams to best support colleagues with disabilities. In
addition, we are working with our IT and real estate teams
to improve digital and physical accessibility within our
offices.

1,100
active members (notincluding allies)

We achieved several milestones across our four priority
AccessAbility goals:• Affiliation. We launched AccessAbility@BCG in May
2022 and gained nearly 750 members by the end of
the year. We also have local affinity networks in offices
across the US, Australia, and Europe—all working tosupport colleagues across all dimensions of disability.
• Awareness and Education. We held six global Authentic Conversations to raise awareness of accessibility
topics, introduced the AccessAbility mentorship program,launched a mental health championship training for BCG
employees in conjunction with Global Wellbeing@BCG,
and hosted the first-ever BCG-wide disability, inclusion,and awareness campaign on equitable people policies
and processes.

45
countries supported throughthe network• Seat at the Table. In addition to our existing membership with Valuable 500, we became a corporate partnerof Business Disability Forum and DisabilityIN, helping toadvance inclusion beyond BCG.
• Thought Leadership. We performed extensive market
research focused on employees with disabilities, theresults of which we will publish in 2023.

BOSTON CONSULTING GROUP

65

Racial and Ethnic Diversity, Equity, and Inclusion
BCG continues to drive progress on racial and ethnic equity
and diversity within and beyond BCG. This work has three
key pillars:• Our Workplace. Increasing representation and driving adiverse, equitable, inclusive culture

Commitment• Our Work. Pushing for diversity, racial equity, and inclusion with our partners and clients• Our World. Deploying our resources for social andsystemic change
We have continued to make progress within the six public
commitments we made in June 2020 to advance racial
equity in the US within and beyond BCG’s US offices.

Progress in 2022

1. Accelerate representation of Black BCGers
10% of new hires identify as Black or African American across ourand further commit to making BCG a place where US offices, and our retention programs demonstrate progress,
all talent thrives
with no significant retention gaps across demographics in 2022
2. Foster accountability by accelerating the clarity, 600+ senior leaders have participated in the Groundwater Leaderambition, and measurement of our goals
ship Program to build awareness and collective action on racial
equity. Increased optimization and capabilities with dashboardthat helps leaders manage outcomes across DEI
3. Strengthen our supplier diversity efforts,
increasing the number of minority- and women-owned businesses

Our Supplier Diversity Program has demonstrated progress, with a
47% increase in spending on minority-owned business enterprise
suppliers in 2022

4. Advance our clients’ pursuit of racial equity
through our Social Impact practice120+ racial equity projects launched to amplify impact

5. Catalyze change by investing $100 million in
BCG talent resources over five years$72 million deployed in BCG talent, including 700+ BCGers
engaged in equity-focused projects with both public and private
partners since 2020

6. Donate $1 million over five years to organizations that are leading change in racial equity$900,000+ donated to Black equity-focused organizations sinceJune 2020

Our North America Center for Inclusion and Equity leads
our work with companies, governments, and social impact
organizations in that region to build inclusive and equitablecultures, expand organizational diversity, and drive systemicchange alongside business value and social impact.

66

We also expanded our regional racial and ethnic diversity
affinity networks in Europe, Australia, and Africa. For example, the Kulcha & Ethnicity, First Nations, and Peopleof Colour networks have been established in Australia,
New Zealand, and South Africa respectively, reflecting each
office’s individual cultural heritage to encourage inclusion
and belonging. In addition, we initiated a voluntary ethnicity self-identification campaign in the UK to improve datatransparency.

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Fostering an Equitable and Inclusive
Workplace
At BCG, we systematically track retention and promotion data globally as we aspire to have equal rates forboth men and women, which we have achieved forseveral years. We also track retention and promotion
data for other diversity groups in specific locations,depending on data availability. Ensuring fair and equitable pay for employees is a key part of BCG’s commitment to creating an inclusive workplace. See page 61
for more details on BCG’s compensation practices.
We continuously reinforce our structured approach toinclusion by using a set of global tools and resources
to share best practices and connect DEI leadersacross all our markets—building an inclusive culture
for all BCG employees.
Around the globe, regional teams and local offices
create programming and educational initiatives on
topics of culture and identity to promote allyship andraise awareness of ways to advance inclusion in theworkplace and to promote psychological safety
among all our employees. For example, we hosted
dozens of “Authentic Conversations,” which provide aforum for open dialogue about culture and identityand give employees an opportunity to share their
lived experiences and for all BCGers to feel understood, respected, and supported.

2022 in Numbers22

46%
of total consulting team staff
in the US are members of
racial or ethnic minorities

51%of the firm’s new hires in the
US are members of racial or
ethnic minorities

Leaders typically have tools and strategies for quantifying and tracking progress on diversity and equity
in the workplace, but less guidance for assessing
inclusion. Many companies have struggled to objectively measure inclusion, discern whether their inter­
ventions are having the intended effect, and course-­
correct with confidence.
To fill this void, we embarked on an ambitious research project to understand what drives feelings ofinclusion in the workplace. We surveyed around27,800 workers across industries in 16 countries todevelop BCG’s BLISS Index. (BLISS stands for “bias-­
free leadership, inclusion, safety, and support.”) The
BLISS Index is a comprehensive, statistically rigorous
tool that uses sophisticated modeling techniques to
identify which experiences at work drive feelings ofinclusion and ultimately influence decisions about
whether employees will stay in a job or leave it—a
topic that will become even more important as the
struggle for talent becomes fiercer and the economy
more uncertain. BCG’s BLISS Index has identified aset of actionable drivers for leaders to use in building positive experiences of inclusion in their workplaces around the globe.

30%of the firm’s leadership in the
US are members of racial or
ethnic minorities

22. We are currently able to disclose race and ethnicity data for our
US operations only. BCG does not mandate that all staff identify
their race or ethnicity, which prevents us from reporting globallyon these metrics. Members of “racial or ethnic minorities” inthis context include Asian,
5. Hispanic/Latinx,
We are currently Black/African
able to disclose race and ethni
American, Native American,
or moreonly.
races.
ourandUStwo
operations
BCG does not mandate t

BOSTON CONSULTING GROUP

identify their race or
ethnicity, which prevents us from reporting glob
metrics. Members of “racial or ethnic minorities”
context include Asian,67
Hispanic/Latinx, Black/African American, Native
and two or more races.

Shaping the Global Agenda
We engage with leading private and public sector organizations and NGOs to build inclusive businesses and DEI
programs that create long-term, sustainable advantage for
their talent, their organization, and society. Beyond ourwork with clients, BCG invests substantially in proprietary
DEI research and every year publishes numerous articles
with actionable recommendations to drive improved DEI
outcomes for ourselves, our clients, and the world at large.
DEI is fundamental to our firm, a crucial lever for our clients, andessential for the personal growth of our people. Watch this shortvideo to hear BCGers share their experiences in driving DEI forclients while unlocking their own potential.

Our most read DEI research in 2022:

Rethink & Broaden Diversity,­Equity, and Inclusion to Createa Competitive Advantage

Reinventing Gender Diversity Programs for a Post-Pandemic WorldTo Fix the Labor Shortage, Solve
the Care Crisis

It’s Time for Institutional­Investors to Embrace the S in ESG

The Importance of Being­Equitable in Product Design

Know Where You Stand to Take aStand on Equity

68

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Driving Change Through Partnership
We collaborate with organizations that are leading the way
on DEI issues to generate lasting impact across the business environment and in the wider world:

G20 Empower. We are a knowledge partner in this allianceof private sector and government leaders who jointly advocate for the advancement of women in leadership positions in the private and public sectors.

Bloomberg Equality and the Conference Board. We sponsored conferences to bring together leaders and allies forsolutions-oriented dialogue and best-practice sharing.

Girls Who Code. We partnered to develop Technical Interview Prep, a free learning module to successfully prepare
young women and nonbinary people for thriving careers in
the tech industry.

Catalyst. BCG is a key research partner of Catalyst, and BCG
representatives sit on its board of advisors and experts,
helping build workplaces that work for women. Our CEO
Christoph Schweizer is a Catalyst CEO Champion for Change.

Open for Business, GiveOut, OUTstanding (INvolve), andPartnership for LGBTI Equality. BCG partners with theseorganizations to support and advance LGBTQ-inclusive
business environments.

The Female Quotient. We are a sponsor of the Equality
Lounge at Davos, where we lead discussion sessions on
how to remove barriers and increase inclusion for womenin business.

World Economic Forum’s Partnering for Racial Justice inBusiness Initiative. We are a founding member of this global
coalition committed to creating equitable and just workplaces
for underrepresented racial and ethnic employees andcollectively advocating for inclusive policy change.

Women’s Forum for the Economy & Society. We are asponsor and knowledge partner with this group, supportinga committee of 12 companies that collaborate to boost
women’s participation in STEM fields.
UN Women. We cohost gender diversity roundtables withthis organization in Denmark and Finland, assembling leaders
to share experiences and best practices for advancing gender
diversity. We also publish thought leadership pieces based on
proprietary research through this roundtable initiative.

Management Leadership for Tomorrow. We partnered withthis group to develop the Black Equity and Hispanic Equity
at Work Certification Programs. We have achieved bronze
certification in the Black equity program and are developing a comprehensive racial equity plan to continue to makeprogress on this front.
The Valuable 500, Business Disability Forum, andDisabilityIN. We partner with these organizations topromote disability inclusion.

Exhibit 11 - Our Diversity, Equity, and Inclusion Partners

Source: BCG.

BOSTON CONSULTING GROUP

69

Learning and Development

2022 Highlights

We aim to deliver a world-class learning experience that
accelerates employee development, deepens a sense of
belonging, and unlocks employees’ potential to have an
impact on our firm, our clients, and the world. We facilitatecontinuous learning for our employees, offering multipledelivery channels (in person, virtual, online, and team
based) for easy access. We help our people hone the skills
they need to perform in their current roles and to realize
their full potential and personal growth.

Continuous Learning Model and Expanding Offerings
We have made significant progress on our continuous
learning journeys, bringing core experiences to new-hirecohorts, internal people managers, and newly elected
MDPs. More than 5,500 employees participated in 2022,
taking advantage of a strong onboarding start followed by
self-paced, self-directed upskilling experiences personalized
to the learner’s need. We also laid the foundation for expanding the continuous learning concept to our case leaders
and are planning a rollout of this expansion during 2023.

Our approach centers on three core elements:
1. Personalized Career-Step Educational Programs.
These are typically multidimensional learning journeys
that use a range of tools and techniques, including
in-person classroom-based learning and discussion,
virtual live sessions, digital learning primers, and postprogram learning reviews.
2. An Extensive Repository of Internally Developed
Learning Resources and External Libraries. We
have more than 4,000 modules for core skills and expert
knowledge, as well as access to a wide selection of external libraries—such as LinkedIn Learning, GetAbstract,
and TED@Work—that offer more technical skills.
3. Upskilling Campaigns. We engage in rapidly upskilling a large number of employees across many different
cohorts and career steps on specific skill sets, using intensive, targeted programs that typically combine digitallearning primers and classroom sessions.
Our Global Learning Council sets priorities and regularly
reports to the Executive Committee and People Team
leadership. The Global Learning Council guides the evolution of our learning and development approach in response to new business needs, BCG’s overall strategy, avarying and diverse skills base, and employee demand.

70

In addition, we have pivoted our continuous learning beyond core learning experiences to encompass upskilling,including offering six chapter journeys on key topics suchas cybersecurity and IT architecture. Over 5,000 learners
have already engaged on these topics. In addition, we
expanded functional learning for internal professionalgroups (including finance and IT) to better serve theirunique skill sets.
Reconnecting Through In-Person Learning Experiences
One of our business priorities is to reduce carbon emissions by 50% per learner by 2025 versus a 2018 baseline,
while maintaining the impact of in-person affiliation. This
commitment requires a healthy balance of in-person andvirtual learning offerings. In 2022, we managed to reducecarbon emissions per learner by approximately 65% relative to the 2018 baseline. This reduction was driven in partby the travel restrictions still in place in some geographies
during the first quarter of the year.
We are glad to safely resume offering capstone experiencesin person, allowing learners to take time to reflect on theircareer path and development. This is often critical for behavioral changes and provides an opportunity to reconnect
with the broader firm via peer exchange and collaboration.
Professional-Grade Virtual Learning Experiences—
Beyond Zoom
We delivered more than 745,000 self-paced and virtual
learning experiences aligned with our balanced approachof virtual and in-person learning experiences. As we grow,we must do much more to meet the demand for upskilling.
Virtual learning is imperative to our overall learning success. It reduces our carbon footprint, increases our ability
to personalize offerings, and allows us to scale access tothe strongest facilitators and experts while reducing timeaway from clients.

EXPANDING OUR REACH, ENHANCING OUR IMPACTAt the onset of COVID-19, we pivoted all offerings to virtual
settings, mainly using Zoom. We learned a lot and havesince pivoted to more professional-grade virtual offerings,
including leveraging professional recording studios withlighting, camera setup, and film crews to create a more
immersive experience for learners and facilitators alike. We
will continue to invest in this trend, as we expect to increase the level of upskilling in the future—and virtual
instruction is vital to meeting that demand.
Upskilling Thousands of Learners on Critical Topics
AI and climate and sustainability (C&S) remain high business priorities for our clients’ CEOs and represent a criticalchallenge for people globally. For that reason, we are doubling down to help our clients solve this complex challenge.
We won’t be able to recruit all the talent needed to deliver
the work. Consequently, we rely on massive internal upskill­ing. We are proud to offer a progressive learning approachwith comprehensive multimode journeys, from nudges forbroad audiences to credentialed expertise-building programs through AI and C&S academies:• AI Academy. This program starts with quick, basic instruction, followed by cohort experiences and topic-level
experiences for case preparedness. We close with the AI
Accelerator, an eight-week program of 20 hours of selfpaced learning, combined with virtual sessions with a
Harvard Business School professor, enabling participants
to upskill on a core set of AI topics.
• C&S Academy. This program starts with bite-size,base-level content for all staff, followed by cohort experience to understand business imperatives, and thenby master classes with topic deep dives to help people tobecome “C&S fluent.” The program closes with a weeklong
intensive course at a partner university (Cambridge or Columbia), complemented by virtual training that covers multiple disciplines ranging from climate science to materials
engineering tod conservation and provides staff memberswith the latest insights in climate science and solutions.

2022 in Numbers

23

online modules completed
annually per learner23

1 weekof formal learning
experiences completed
annually, on average, peremployee91%

attendance at career-steplearning experiences>30,000
employees participated ina learning experience

23. Average for BCG employees who completed online modules.

BOSTON CONSULTING GROUP

71

Employee Well-Being

2022 Highlights

We strive to ensure that all employees are physically andemotionally fit, in good financial health, comfortable and safe in
the workplace, connected to their communities, and harmonious
in their home and work lives. To that end, we offer high-quality
benefits and family support programs, flexibility, time off torecharge and pursue personal interests, and extensive
opportunities for personal and professional development.

We launched Energize to Thrive, a series of programs forour employees that focuses on fundamental aspects ofholistic well-being and human physiology to support personal sustainability and promote increased energy levels inindividuals. Energize to Thrive is based on research-backed
practical skills and habits related to recovery, movement,
nutrition, and breathing—all of which have been shown tosupport physical and mental well-being. Employees canlearn through a variety of channels, such as live webinars
with leading experts, a series of short- and long-form podcasts, and in-person events. More than 50% of BCGers
have participated in the well-being program since its
launch in 2020.

Wellbeing@BCG is a global framework and set of guiding
principles designed to support the delivery of healthbenefits and well-being solutions that are suitable for each
locale and accessible to all employees and their families.
We empower employees to take care of their whole selves,
and we support them at all life and career stages. Throughour global well-being microsite, learning platform, andemployee assistance program, we ensure that our people haveaccess to the support they need, when they need it most.
Our global well-being advisory function, part of our Global
Benefits Center of Expertise, provides expert advisory services
to local HR teams on all topics related to well-being, including
evaluating, testing, and creating innovative solutions.

We have also built the four cornerstones of Energize to Thrive
into our core learning journeys so that all employees canbenefit from these essential well-being skills and increase
their work-life harmony. We enable innovation and continuous
learning in numerous ways, including micro-learning videos,
data insights from wearable technology, and support fromhealth coaches, helping employees embed these important
insights into their future ways of working.
We launched our Wellbeing@BCG virtual-learning series in2020 to support employees with emotional health challenges created by the pandemic, and the initiative continues to grow in popularity. More than 8,000 participants
attended 34 webinars in 2022, an increase of 88% overthe prior year. And with very positive feedback, we willcontinue to evolve and expand this series to further
support employee well-being and personal sustainability.

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EXPANDING OUR REACH, ENHANCING OUR IMPACT

Normalizing the Conversation About
Mental Health2022 in Numbers

At BCG, we envision a workplace where mental health isvalued, promoted, and protected just as physical health is.
We want everyone to have an equal opportunity to enjoy
mental health and equal access to the support they need.
On World Mental Health Day (October 10, 2022), welaunched the Everymind Mental Health Champion Course.
Open to all BCGers, the course encourages people toinvest a small amount of time toward their own and theircolleagues’ mental well-being. BCG also signed the Mental
Health Pledge, created by Thrive Global and the Society for
Human Resource Management, as evidence of our commitment to prioritizing the well-being of our employees.
Stigma and discrimination on this topic still exist and canbe an obstacle that prevents more people from focusing on
their own mental health. Although we recognize that change
can take time, we continue to encourage peer-to-peer
support and emphasize the value of pausing and reflecting
on the importance of everyone’s mental well-being.

100%of BCG employees haveaccess to resources andservices that span the rangeof our Wellbeing@BCG
framework>8,000employees participated in
Wellbeing@BCG virtual
learning sessions>100

employees completed theEverymind Mental HealthChampion certification

BOSTON CONSULTING GROUP

73

Promoting Responsible
Business Practices

Johannesburg - Darryn, Data Scientist

Contents

100% of our teams have completed ourbusiness ethics training programs

10-15% of our annual capacity is invested inresearch and development100%

10-15%

32% growth in BCG’s Global Risk Management$11.7 billion generated in global revenue in 2022

headcount in 2022

+32%

9

2020
74

11

11.7

2021

2022

EXPANDING OUR REACH, ENHANCING OUR IMPACT

C

ommitment to responsible and ethical practices
defines our approach to business and engagement.
We consider this long-standing commitment criticalto the success of our clients and our firm. We strive totransform business and society for the better, in collaboration with our clients and suppliers and in our own operations, always guided by BCG values and purpose.

Our Assurance & Advisory team, described further on page78, periodically assesses the adherence of BCG’s local offices to the Code, as well as to global and local policies,
processes, and standards. Everyone at BCG confirms theiradherence to the provisions of the Code as a condition of
their employment and must reaffirm their compliance in a
written acknowledgment every year.

As a participant in the United Nations Global Compact(UNGC), we remain steadfast in our support for the protection of internationally proclaimed human rights, and wehave maintained a perfect score in the Human Rights
Campaign’s Corporate Equality Index.

In 2022, as in prior years, 100% of BCG employees wererequired to complete a web-based training session on the
updated Code of Conduct, confirm their understanding of
the Code, and agree to comply with its terms.24 The Codetraining is mandatory, and we deliver and track it via ouronline learning platform. Employees who fail to complete
the training face restricted access to BCG systems until
they have met the requirement.

We continued to invest heavily in risk management toimprove our capabilities and expertise and meet the needsof all our business and client stakeholders. In 2022, we
appointed a new chief risk officer to oversee our global risk
team, which grew by 32% in 2022.
We launched a new Responsible AI policy and AI Code of
Conduct, the first of its kind in our industry. Our chief AI
ethics officer, Steven Mills, oversees BCG’s Responsible AI
program and leads the operationalization of our global
Responsible AI policy.

Responsible Business Practices
BCG Code of Conduct
Our Code of Conduct (the Code) sets expectations for the
behavior of all BCGers, complements the ethos underlying
our UNGC commitment, and serves as a bridge connecting
our firm’s values, policies, and norms to the actions ofindividuals. The Code is designed to foster ethical decision
making and promote behaviors that meet the highest
standards of professional conduct.
The Code covers topics such as our commitments to ourclients, our employees, the firm, and society. It highlights
the importance of providing client services ethically, protecting confidential information, managing actual andperceived conflicts, enabling information security, competing fairly, and maintaining a safe environment free ofharassment and discrimination, coupled with a “speak-up”
culture in case of concerns. It underscores our focus onachieving a positive and lasting impact on society. The
Code also reaffirms our adherence to the laws and regulations of the countries where we do business.

BCG’s Code of Client Service
According to BCG’s founder Bruce Henderson the “mostimportant value of all, for each professional, must be dedication
to the task of optimizing client contribution to society.” The BCG
Code of Client Service (BCCS) provides a framework for
global policies and processes to back our long-standing
shared values and optimize the value we create for clientsand society. We regularly remind BCG staff that a commitment to our values and purpose entails considering not
only the value of our work for clients and society, but also
any associated risk for clients, society, and BCG. Groundedin our company values and purpose, our aspiration is tocreate a culture committed to accountability, transparency,
honesty, humility, and continuous improvement. A keyelement of the Code, the BCCS underlines our commitment to lead with integrity as we serve our clients, operate
in our communities, and guide our teams.
The BCCS articulates six core principles that address key
dimensions of the work we do at BCG. (See Exhibit 12.) In
practice, these principles help guide us in systematically
identifying and evaluating opportunities and risks, andmitigating the risks, throughout the case life cycle so that
we live up to the aspirations of our founder.

24. Because new people routinely join and depart BCG, and some of them may not have completed the training at the time of reporting, complianceis marginally under 100%.

BOSTON CONSULTING GROUP

75

Exhibit 12 - Our Code of Client Service Defines Our Expectations andGuiding Principles Across Six Dimensions

1
What types ofwork we do andwhere in theworld we do it

2
Who we work
for and how
we engage

3
The impact ourwork can have onother clients andstakeholders

4
How we workwith third parties

5
How we manageand protect
information

6
How we work
together andtreat each other

Source: BCG.

We recognize, however, that written policies can go only so
far in mitigating risk and that our people, culture, andprocesses are critical to ensuring that we optimize ourcontributions to society. BCG also recognizes that ourpeople sometimes encounter “gray zones,” where the rightsteps may be unclear. Although BCG empowers its caseteams as its active first line of defense in risk management
efforts, we also have robust resources and processes tosupport our teams in socializing risk mitigation across thefirm. BCG’s values-first culture is supported by dedicatedteams, fellow MDPs, other senior firm leaders, BCG business functions, and regional and global governance bodies
that aid in the implementation of BCCS on myriad client,supplier, and employee matters. Our people are dedicatedto supporting one another when navigating complex questions and gray zones. “Grow by growing others” is a guiding
principle of our culture.
BCG’s culture, supporting resources, and commitment to
the firm’s purpose of unlocking the potential of those who
advance the world require collective effort across the firm.
In keeping with that purpose, BCG regularly declines client
work or other relationships that do not align with ourvalues. Continuous improvement in these areas requires
strict alignment to adapt to the constantly changing world
around us and to shape actions and choices that embody
our commitment to advancing responsible business practice.
Anti-Bribery and Corruption
BCG’s culture of integrity is upheld by a policy of zero tolerance for corruption of any kind. We consider this standard
essential for performing our role in society, as well as forpreserving our reputation as trusted advisors of our clientsand an employer of choice for the best talent.
The Anti-Bribery & Corruption policy is a key component ofboth the Code and the BCCS, defining our commitment,
expectations, and approach. All BCGers are expected toabide by applicable laws, treaties, and regulations that76

prohibit bribery and other corruption, including the US
Foreign Corrupt Practices Act and the UK Bribery Act. Accordingly, BCGers must not, either directly or indirectly
through third parties, offer, attempt to offer, solicit, authorize,or promise any type of bribe or kickback to obtain businessor an unfair advantage. This policy pertains to all membersof the BCG community, including MDPs, officers, employees,
contractors, clients, and others with whom we conductbusiness. We also adhere to fair-competition regulations andall other laws in the countries where we do business.
BCG’s Anti-Bribery & Corruption policy provides guidelines
for hospitality, gifts, and other forms of giving to external
individuals. BCG’s compliance and legal teams maintainclose and continuous engagement with the business,
providing support to employees as needed and encouraging them to seek guidance through appropriate channels
when faced with ambiguous situations.
In addition to completing our mandatory Code training, all
new BCGers must complete an interactive Anti-Bribery &Corruption learning module, which explains the principlesof the policy and provides an overview of bribery and corruption risks and offenses, as well as guidance on interacting with government officials and identifying and escalating potential red flags. This module contains customized
content that enables our leadership cohorts to focus on
scenarios and risks that are most relevant to their roles.
BCGers must also periodically participate in mandatory
refresher training.
Our zero-tolerance approach to bribery and corruption extends beyond our own employees to our contractors andsuppliers, as set out in a supplemental Supplier Code of
Conduct. BCG expects all third parties to operate in full compliance with all applicable laws and regulations at all times.

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Human Rights
Respect for the individual is a core value at BCG, asreflected in our firm’s history, the Code, and the BCCS.
Given the nature of our industry and operations, the risk oflabor rights violations within our operations is relatively low.
We have zero tolerance for any use of child labor or forcedlabor practices. In all of our work, we uphold individual human rights without compromise. Our respect for humanrights includes a deep appreciation of diversity. We provide
equitable base pay and award bonuses on the basis of performance and behavior, both of which we monitor worldwide.
BCG is a participant in the United Nations Global Compact(UNGC) and has publicly committed to adhering to the
UNGC’s principles. Notably, this commitment includes
supporting and respecting the protection of internationallyproclaimed human rights and ensuring that we are notcomplicit in human rights abuses. The UNGC’s principles
are derived from the Universal Declaration of Human
Rights and the International Labor Organization’s Declaration on Fundamental Principles and Rights at Work, bothof which accord with BCG’s values.
BCG expects suppliers to share its commitment to humanrights and equal opportunity, and we will not knowingly dobusiness with any partner or supplier that violates ourpolicies or standards. Our BCG Supplier Code of Conduct
defines these expectations as minimum requirements for
suppliers seeking to conduct business with us.
Additional detail is available in our UK and Australia Modern Slavery Act Reports, which further explain our process
for preventing slavery and human trafficking in our business and supply chain. Under our global screening program, suppliers are screened for sanctions, bribery, corruption, and negative media as indications of each supplier’s
historical behavior.
BCG is committed to ensuring that all its employees areafforded all applicable rights under law, including the rightto join labor unions, works’ councils, or other collective
bargaining organizations where applicable. Given thenature of our industry and our private partnership model,
trade unions, works councils, and collective bargaining
agreements (CBAs) are not commonplace. In some geographies, statutory CBAs are applicable, and BCG remains
compliant with these. In addition, where country-level
works councils exist, some CBAs have been developed that
may contain more favorable conditions than the minimum
legal requirement.

2022 in Numbers

100%of active full-time employees completed the annual
acknowledgment of theCode of Conduct, confirming
their understanding of andcompliance with its terms25

95%

of BCGers say they
feel a personalaccountability to
uphold BCG’s values
and ethical standards26

100%

of BCGers have accessto a confidential
ombudsperson
channel where they
can seek advice orreport concerns

25. Because new people routinely join and depart BCG, and someof them may not have completed the training at the time ofreporting, compliance is marginally under 100%.
26. Source: 2022 BCG People Survey.

BOSTON CONSULTING GROUP

25. Because new people routinely join and depart BCG, and some of them mcompleted the training at the time of reporting, complianceis marginally under 100%.
77

26. Because new people routinely join and depart BCG, and some of them mcompleted the training at the time of reporting, complianceis marginally under 100%.

Raising Concerns
Although BCG’s culture is rooted in outstanding professional standards, we acknowledge that at times ethicaldilemmas, difficult decisions, and behaviors inconsistent
with our Code or other policies may arise. We ask andencourage our people to adhere to the principle of “seesomething, say something” at all times.
Everyone at BCG is encouraged to raise concerns about
potential misconduct without fear of adverse repercussions. We offer multiple channels of reporting, including
our confidential ombudsperson program and “speak up”
line, both of which are designed to prevent and identify
misconduct and support BCG’s aim to lead with integrity.
Once raised, each concern is handled with sensitivity andin confidence, subject to any overriding legal or regulatory
requirements. Further, everyone at BCG is responsible forreporting known or suspected violations of our Code of
Conduct, our values, and any law, regulation, or policy. We
address all such concerns appropriately in accordance with
our internal policies.
TaxationIn the environmental, social, and governance (ESG) framework, tax is an important component of a business’s contribution to society. BCG’s global tax strategy is a criticalelement of our commitment to responsible and sustainable business. This includes, among other things, ensuringthat our tax practices align with the Organisation for Economic Co-operation and Development’s international tax
reform work on base erosion and profit shifting, aiming tocomply fully with our obligations, and engaging openly with
tax authorities and other stakeholders. To deliver on thatcommitment, BCG has adopted a transfer pricing methodology that facilitates allocation of BCG’s global profits
among all countries, thereby ensuring that we pay a fairshare of tax in each jurisdiction in which we operate.

Global Risk Management
BCG’s Global Risk Management function acts as a trusted
advisor to the BCG community, enabling innovation andgrowth in our services, while supporting and protecting ourpeople, clients, and brand in an ever-changing world. Ledby our chief risk officer, Global Risk Management encompasses specialist teams across compliance, data protection, enterprise risk management, assurance and advisory,
information security, and safety and security. The teams
continuously look around corners, both internally andexternally, and partner with other global functions and thefrontline business to ensure that risks are identified proactively and managed holistically, and that appropriate
guardrails are applied where required.
Our approach to risk management is guided by establishedframeworks and processes that align with best practices
and support our objectives and values as an organization
and as a global risk function. A central pillar of our approach is that all BCGers are responsible for risk identification and risk management. Our specialist risk management teams work in partnership with our MDPs andemployees to proactively identify and manage risks acrossour regions, practices, functions, and risk categories. We
foster ongoing engagement and partnership in identifying
and mitigating the key risk exposures facing our businessthrough a variety of initiatives:• Proactive management and assessment of our global
risk register• Local and global commercial advisory processes forclient and topic selection and conflict management• Annual risk surveys and engagements with MDPs
• A global risk and compliance node network• Periodic internal risk reviews of all BCG offices• Regular virtual and in-person training on various risk,
compliance, and information security topics
In recognition of our robust risk management approach to
information security, BCG’s global Information Security
Management System received certification for full compliancewith the ISO 27001 international information security standard.

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EXPANDING OUR REACH, ENHANCING OUR IMPACT

The scope and effectiveness of BCG’s governance, risk
management, and internal controls receive independentand objective evaluation from our Assurance & Advisory
team as well as through our external auditor and industry
certifications. Internal risk reviews typically occur on athree- or four-year cycle, depending on the local risk environment and the results of prior reviews. At the highest
level, risk oversight is provided by our CEO, Executive Committee, and Audit and Risk Committee—a committee ofthe board that meets at least six times each year to review
the firm’s risk management profile.

2022 Highlights
BCG continued to invest heavily in risk management toimprove our capabilities and expertise and meet the needsof our business and client stakeholders. In 2022, Global
Risk Management brought on a new chief risk officer, andBCG elevated this role to be included as a permanent
member of BCG’s Operating Committee. The function also
expanded in scope to integrate information security as well
as physical security, and the team grew by 32% in 2022.
The Global Risk Management function continues to invest
in technology solutions to support our objectives, which in2022 included a governance risk and compliance solution
as well as tools to support business continuity planning
efforts and key compliance processes.

2022 in Numbers

32
BCG offices underwent
an internal risk review

32%
growth in BCG’s Global
Risk Management
headcount in 2022

100%
ISO 27001 certification
coverage for ourInformation Security
Management System

BOSTON CONSULTING GROUP

79

Safety and Security
BCG is committed to providing a safe, secure work environment for our employees. We accept the responsibility, as agroup and as individuals, to help prevent situations thatjeopardize our health and well-being. Our dedicated Global
Security team, composed of experienced professionals,
partners with our offices, employees, and other internalfunctions to ensure the safety and well-being of our employees through programs that focus on security awareness, travel, workplace safety and security, incident response, and operations resilience.
Staying Safe on the Road
Owing to the nature of BCG’s work, travel poses the mostmaterial risk to our people’s health and safety. Our Global
Security team monitors trends and adverse events in all
locations where we have employees and takes a risk-based
approach to keeping our staff safe and secure while traveling. We equip our people with digital tools that provide
up-to-date travel safety and security information and onetouch connection to our 24-7 response center so that they
can make informed decisions to avoid jeopardizing theirhealth and well-being. Pretravel assessments, planning,
and authorization processes are in place for locations
where elevated security threats exist. In these cases, theauthorizing body is the Global Security Committee, which
consists of BCG’s chief risk officer, our general counsel, asenior MDP, and the executive director for security andsustainability.
Our global and local Incident Response Teams, led by
MDPs and supported by our global team, are trained andequipped to react to adverse events and reduce their impact to our people, operations, and assets.
Creating a Safe and Secure Workplace
Our offices have programs in place to ensure the healthand safety of employees and guests. These programs follow
BCG’s standards of physical security that establish baseline criteria for securing buildings, offices, and operations.
We maximize natural light in our offices and provide ergonomic workstations to improve employee well-being andsafety. To cultivate awareness among our employees, we
include health and safety procedures as a standard module in our new-hire induction process. Employees visiting a
new office for the first time have access to local health andsafety procedures. New office buildings are subject to acomprehensive risk assessment to mitigate our employees’
and the firm’s exposure to risk, and the Global Security
team is part of every new office build team. Our Assurance& Advisory team conducts office reviews for all BCG offices,typically on a three- or four-year cycle (depending on risk
exposure), including an assessment of office safety andsecurity protocols and practices.

2022 in Numbers

100%of new offices openedin 2022 were subject
to a physical security
risk assessment

100%of new consulting
staff completed ourmandatory travel
safety training

0

work-related fatalities
or high-consequence
injuries27

27. Reporting on injuries and fatalities covers US operations only.

80

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Building Resilient Operations
We continued to work with our global offices and our functions on enhanced business resilience and incident response. In 2022, in addition to conducting simulation
exercises, we applied lessons learned during contemporary
events—from the continuing effects of the COVID-19
pandemic to the war in Ukraine—to develop new tools andprocedures to support business resilience. We worked in
2022 to embed new digital tools introduced in 2021 toenable dynamic responses across our incident response
and business continuity teams and enhance disaster recovery capabilities. Given the uncertain geopolitical context inwhich we work, the Global Security team placed a greater
emphasis on horizon scanning and scenario developmentin 2022. The team developed scenarios in consultation
with local leadership and leading industry experts to ensure that BCG is as prepared as possible for all contingencies.
Coping with COVID-19
Our COVID-19 response and employee support became
more complex and regionally diversified in 2022 as economies and markets adopted different testing requirements,
rules about travel, and other restrictions on the basis of
local case rates and differing approaches by public healthauthorities. To promote our employees’ physical and psychological safety and to ensure a healthy, productive returnto the office, to clients, and to international meetings, we
needed our employees to feel safe and to trust that theywould be cared for.
We continued to work with our people and clients to reduce the risk of COVID-19 transmission, even as many of
our global and regional international meetings resumed in
2022. We reviewed and updated our internal procedures
and measures in consultation with local offices and leadership. In order to adhere to applicable regulations, balance
the varying expectations of employees from dozens ofcountries, and minimize the risk of transmission, we implemented a comprehensive program of pretravel guidance,
testing, case monitoring, and contact tracing. Regular staff
feedback helped us calibrate needs and build confidence.

Responsible Artificial Intelligence
Clients trust us to help them transform their organizations
and industries through artificial intelligence (AI), whichplays an increasingly vital role in their businesses. Though
AI presents another exciting avenue for BCG to unlock thepotential of those who advance the world, its use can carryrisks. We have an obligation to ensure that our AI solutionsdeliver transformative impact without inadvertently harming people or communities or compromising BCG’s values.
This is why the responsible design and use of AI is fundamental to our approach.

BOSTON CONSULTING GROUPOur chief AI ethics officer, Steven Mills, oversees BCG’s
Responsible AI program and leads the implementationof our global Responsible AI policy. This policy is one
component of our broader BCCS, which ensures that thework we do aligns with BCG’s core values and purpose.
Our AI Code of Conduct further codifies BCG’s commitment
to responsibly design, develop, and deploy AI systems
with our clients around the world.
BCG’s Responsible AI policy defines a set of “high vigilanceareas” that require additional review and approval. These
involve projects that could have a substantial positive impact on society and our clients but also bring a higher possibility of risk. Proposals for such projects are reviewed by
BCG’s Responsible AI Council (RAIC, a global, crossfunctional group of senior leaders and experts who provide
feedback on each proposal, surfacing risks, defining mitigation strategies, and creating guardrails. Responsible AI isintegrated into BCG’s processes for AI software development
to ensure that all mitigation strategies are put in place, theprogression of each project is monitored over time by the
RAIC, and new risks are identified as they emerge.
We are investing in training to upskill our teams and creating tools and frameworks that incorporate Responsible AI
best practices. For example, we have developed software
applications—such as Code Carbon and Facet, two webbased project risk assessment tools—that empower ourteams to address potential issues. We integrate the practiceof responsible AI into our training, and we regularly holddedicated executive-level workshops across the organization.

2022 Highlights
The Executive Committee’s approval of BCG’s Responsible
AI policy in 2021 elevated this work across BCG and codified
our firm’s commitment. In 2022, we demonstrated thiscommitment to our external stakeholders through our AI
Code of Conduct and an accompanying video. The AI Codeof Conduct—the first of its kind in our industry—connects
these efforts to BCG’s purpose. By sharing original researchwith the technology and business communities, we haveestablished BCG as a responsible AI thought leader. We
were nominated as a finalist for the RAI Institute’s RAISE
2022 Leading Enterprise Award. DataIQ listed Steven Mills
among the 100 Most Influential People in Data, and ourwork has been recognized in MIT Sloan Management Review,
Venture Beat, Protocol, Wired, and other publications.
The global launch and rollout of our Responsible AI policy
was another highlight of 2022. To support the launch, wecreated an internal microsite that explains how we operationalize this work, consolidates case studies, lists RAIC
membership information, and provides internal tools andtraining. We also offered training sessions to technical andnontechnical staff, including executive leaders, to enable
them to activate BCG’s responsible AI principles during
project execution.

81

Data Privacy

2022 in Numbers

We adhere to all local laws and regulations pertaining to
the protection of personal information and the rights andfreedoms of individuals. Protecting privacy and data isessential to preserving the trust of our clients and employees. Our global privacy and data protection program supports legal compliance and effective privacy risk management in the countries where we do business.
BCG policies governing the use and protection of personal
information include our global data protection, privacy,
personal data classification, data retention, personal data
breach notification, and employee privacy policies, among
others. We also provide guidelines to help staff interpretthese policies. These internal policies and guidelines arebinding for every BCG employee, and they facilitate compliance across our operations in all markets.
Governance
BCG’s Data Protection Office oversees our global privacy
and data protection program and reports to our chief risk
officer and general counsel. The Data Protection Officeserves as the contact point for data protection authorities,
handles internal and external data privacy requests, provides advice on adherence to data privacy regulations,monitors compliance, and manages the network of local
data protection contacts. In partnership with our risk team,the Data Protection Office also administers BCG’s dataprivacy training and awareness program.
Specific procedures promote compliance with global
regulations. Among these procedures are the following:• A comprehensive record of how BCG processes personal
data

100%
of new employees completed
our mandatory data privacy andinformation security training as partof their onboarding process28

100%

of BCG employees annuallycertified their understanding of and compliance with the appropriate data privacy
and information security policies29• Data protection impact assessments to determine
whether high-risk information systems have proper
controls in place to mitigate risks to individuals• Data-processing agreements with vendors, outlining
security and privacy responsibilities• Controls to reinforce the lawful transfer of data within
BCG and with BCG data processors• Methods to guarantee that BCG employees manage
personal data appropriately• Processes to escalate and notify the appropriate
authorities in the event of a personal data breach• Dedicated staff to handle data access, correction, anddeletion requests
28. Because new employees routinely join BCG, and some of them
may not have completed the training at the time of reporting,compliance is marginally under 100%.
29. Because active employees routinely depart BCG, and some ofthem may not have completed the annual acknowledgment at
the time of reporting, compliance is marginally under 100%.

82

EXPANDING OUR REACH, ENHANCING OUR IMPACTIn 2022, all employees completed a newly designed mandatory privacy and security refresher training session. The
Data Protection Office focused on new privacy and security
laws, including the Chinese Personal Information Protection law and Cyber Security law, the California Privacy
Rights Act, Ontario’s bill 96, and offered new guidance.
Information Security
BCG’s Information Security Risk Management (ISRM)
program safeguards BCG’s brand and intellectual property,
as well as employee and client information, from misuse,damage, and unauthorized access. We adhere to a multilayer, proactive approach to reinforce the confidentiality,
integrity, availability, and nonrepudiation of information,
while maintaining cost-effective security that protects thefirm, our people, and our clients. We comply with all contractual requirements, laws, and regulations related to
information security in the countries where we operate.
BCG’s information security policies and practices are risk
sensitized and follow the code of practices established by
the International Standard ISO/IEC 27002. We have received ISO 27001 certification for our global Information
Security Management System, as well as Cyber Essentials
certification in the UK, and TISAX certification for offices inGermany, India, and the US. We employ best practices.

Sustainable Procurement
Our commitment to delivering positive societal impact iscentral to our values and purpose and extends beyond ourworkforce and operations to our suppliers. By embedding
attention to supplier sustainability and diversity in our
procurement processes, we drive business growth andinnovation while unlocking and advancing more sustainable business practices.
Our sustainable procurement program aims to deepen our
engagement with our suppliers and use BCG’s buying
power to support three pillars of sustainability:• Environmental. We focus on protecting our planet andnatural resources while making progress toward ourambitious net-zero climate impact goal.
• Social. We help improve the quality of livelihoods andadvance DEI by supporting socially responsible anddiverse suppliers.
• Economic. We look to build a more prosperous economy by driving investment in innovation and financial
inclusion throughout our supply chain.

Supplier Code of Conduct
Our Supplier Code of Conduct (SCoC) outlines the minimum requirements that suppliers must meet in order todo business with BCG. The SCoC forms the foundation of
our systematic approach to cultivating a more sustainable
and responsible supply chain. To that end, in 2019, BCG
added the SCoC to all of our standard supplier contract
templates.
The SCoC establishes minimum requirements across four
broad categories: business practices and ethics; labor
practices and human rights; environmental regulations
and protection; and protection of assets, intellectual property, and data. It also delineates the process for suppliers
to use in reporting on their compliance, as well as therange of potential BCG responses to suppliers’ failure tomeet SCoC requirements.

Supplier Governance Policy
Our Supplier Governance Policy defines how we source andmanage suppliers in compliance with all applicable BCG
policies and legal requirements. It also details our approach to delivering the best value for our business andclients. We have rolled out the policy in our UK office andwill launch it in other major BCG hubs in 2023. The policy
applies to BCG staff and all third parties involved in thesourcing, selection, and management of suppliers. It outlines processes and practices for the full life cycle of supplierengagement in order to effectively identify and mitigate risk.

Supplier Sustainability Questionnaires
We have integrated a supplier sustainability questionnaire
into our standard supplier request-for-proposal template.
The questions that it poses raise awareness of our commitment to sustainability in the supply chain, provide opportunities for our sourcing teams to use sustainability criteria
in evaluating new suppliers, and improve the quality ofdata we collect about the sustainability commitments andperformance of new suppliers. In 2022, we enhanced thesesustainability questions to enable sourcing teams to determine the energy efficiency of specific products. As part ofour commitment to carbon neutrality, we are evaluating
the carbon emissions associated with all supply chain
emissions (reported in our Scope 3 purchased goods andservices and capital goods categories). This quantification
will help inform future engagement with suppliers on thesubject of carbon emissions.

Our sustainable procurement approach has five core tenets.

BOSTON CONSULTING GROUP

83

Supplier Screening
BCG promotes sustainability and diversity in its suppliersourcing and selection process. We screen new suppliersand continuously monitor all suppliers for red flags related
to sanctions. We also complete anti-bribery and corruption
screening for suppliers in high-risk locations for reputation,negative news, and PEP (politically exposed persons)status. We have established a protocol for raising red flags
and escalating issues when we find that suppliers require
additional screening. A periodic report shares the screening results with relevant business stakeholders and internal control groups to ensure effective ongoing management of supplier-related risks.

Supplier Diversity Program
As part of our commitment to the growth and development of supplier diversity, we offer a fair bidding process
for diverse suppliers to obtain procurement opportunities
within BCG. Our standard supplier request-for-proposal
template encompasses supplier diversity questions. In theUS, where these efforts are most advanced, diverse suppliers include minority-owned, woman-owned, veteran-owned,and LGBTQ+-owned businesses, as well as certain small
and medium-size enterprises. Our procurement team
maintains a master list of all diverse suppliers, and it
reports on and monitors spending with these suppliers ona quarterly basis. In 2022, 4% of our US spending was withdiverse suppliers.

2022 Highlights

2022 in Numbers

100%of BCG’s supplier contract
templates include acommitment to adhere to the
Supplier Code of Conduct

100%of BCG’s supplier request-forproposal templates include
a supplier sustainability
questionnaireThis year we worked with our internal teams and withclients’ supplier diversity teams to establish reporting on
spending on diverse suppliers. We are also working withindividual offices on local supplier diversity initiatives.
In the area of supplier risk management, we developed a
new supplier risk framework for improved governance andrisk management during all stages of the supplier risk life
cycle. The framework includes a new supplier risk assessment methodology—which we launched as a pilot—that
more accurately identifies inherent and residual risks
within suppliers. This framework permits proportionate
risk treatment of suppliers that BCG uses to support its
strategic objectives. In addition, we reviewed the BCG
supplier base to ensure that our suppliers comply with theregulatory deadline for the GDPR regulations.
In response to the Ukraine conflict, we screened all of ourRussian suppliers for sanctions, PEPs, and adverse media
to ensure that we work only with reputable suppliers thatare not sanctioned and do not pose any reputational risk.
Our stand-up of daily monitoring across BCG’s supplierbase enables us to quickly and proactively identify suppliers impacted by global sanctions and to take appropriate
action in instances where we find risks.

84

100%

of BCG’s category managers
attended a sustainableprocurement training program4%

of our spending in the US
was with diverse suppliers(compared to 2% in 2020)

EXPANDING OUR REACH, ENHANCING OUR IMPACT

New Delhi - Krtin, Associate; and Aanya, Associate
Contents

AppendixContents
Greenhouse Gas Reporting Methodology

WEF Stakeholder Capitalism Metrics Index

Task Force on Climate-Related Financial Disclosures(TCFD)GRI Index

Performance Data Tables

BOSTON CONSULTING GROUP

85

Greenhouse Gas Reporting Methodology
BCG creates a greenhouse gas (GHG) inventory annually.
We take an operational control approach to defining ourreporting boundary and compile our inventory in line withthe requirements of the GHG Protocol Corporate Standard,
covering all material Scope 1, Scope 2, and Scope 3 GHG
emissions sources. Our GHG emissions inventory is
independently audited and verified against the ISO
14064-3 standard.
Scope 1 and Scope 2 Emissions
We gather energy consumption data from our offices globally. Where possible, we collect actual consumption datafrom invoices, from landlords, or directly from energy
suppliers. When we cannot obtain this data, we use industry benchmarks to estimate energy consumption on thebasis of occupied floor space. We follow the Scope 2
market-based accounting approach to account for ourpurchase of renewable electricity.
Scope 3 Business Travel Emissions
Business travel is our most material emissions source andmakes up the majority of our GHG inventory. Our businesstravel emissions include flights, hotel nights, rail, rental
cars, and taxis. To calculate those emissions, we use thedistances traveled per mode and class of transport and thenumber of hotel nights, as provided by our global travel
agent, and multiply the travel activity by the conversion
factors produced by the UK government. To account for
travel booked by individuals outside our travel agent system, we apply a small uplift factor to flight, rail, and hotel
emissions. For taxi emissions, since we do not have a global record of all taxi journey mileage, we convert expenses
data into mileage using an external benchmark dollarsper-mile conversion rate to estimate the total distancetraveled. We then look at the average emissions intensity(gCO2/Km) for our largest taxi service provider to convert
the distance traveled to emissions.
For air travel emissions calculations, we consider four key
components within our reporting:• Direct GHG emissions resulting from the combustion offuel to power the aircraft, known as tank-to-wake (TTW)
emissions• Indirect GHG emissions generated in the upstream
production and transportation of the aircraft fuel, known
as well-to-tank (WTT) emissions; the sum of WTT and
TTW emissions is referred to as well-to-wake or life cycle
emissions• Emissions reductions from the purchase of sustainableaviation fuel (SAF)
Although the impact of aviation on the global climate
system clearly extends beyond the single effect of direct
GHG emissions, the science in this area is nascent and themitigation levers for addressing non-GHG factors remain
largely untested. Accordingly, we have adopted thefollowing recommendations from the SBTi Aviation
Sector Guidance:• In reporting progress toward our science-based targets(as detailed in Exhibit 6 on page 47), we include both
direct (TTW) and indirect (WTT) emissions, but we currently exclude non-GHG emissions.
• In reporting our full GHG inventory, and for our 2030
net-zero strategy, we include direct (TTW) GHG and
non-GHG emissions. The conversion factors that we use
apply an uplift of 1.9 to the CO2 emissions to account for
the warming impact of non-GHG emissions.
In accordance with emerging best practices and guidance,
we report our emissions with and without the applicationof SAF reductions.
Other Scope 3 Emissions
To calculate supply chain emissions, we collect data on theeconomic value of purchased goods and capital goods, andwe multiply those figures by third-party emissions factors(tCO2e/$ spending) to estimate the full life cycle emissions.
For purchased services, we use supplier-specific scope 1
and 2 data from public CDP disclosures where possible
and allocate these to BCG using a tCO2e/$ spending
allocation method. When supplier-specific information isunavailable, we use industry and sector averages toestimate emissions for the remaining service suppliers.
To calculate fuel- and energy-related activities that are notincluded in Scope 1 or Scope 2—such as WTT emissions
and transmission and distribution (T&D) losses—we measure our electricity and fuel consumption and apply therelevant emissions factors. We estimate other, smaller
emissions sources—such as employee commuting, waste,
and upstream transportation and distribution—on thebasis of the best available data. In 2022, we included an
estimate of GHG emissions from remote working within
the employee commuting Scope 3 category.
Restatements
No significant restatements for historical emissions havebeen identified.

• Non-GHG emissions generated during the flight, suchas nitrogen oxides, sulfur oxides, and particulate matter,as well as the formation of contrails that contribute toeffective radiative forcing (ERF)86

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Table 1 - GHG Emissions Inventory and Target Boundaries
NET-ZEROTARGET
BOUNDARY

SBTI SCOPE
1 & 2 TARGET
BOUNDARY

SBTI SCOPE
3 TARGETBOUNDARY

Scope 1

Included

Included

Scope 2 (market
based)1

Included

Scope 2 (location
based)EMISSIONS (KTCO2E)
2018

2022

DIFFERENCE
(%)

N/A

6

3

–49%

Included

N/A

25

0

–100%

Excluded

Excluded

N/A

29

17

–40%

Direct air travel
GHGs (tank to wake)

Included

N/A

Included

214

130

–39%

Indirect air travel
GHGs (well to tank)Excluded

N/A

Included

44

27

–39%

Air travel GHG
emissions
reductions from SAF

Included

N/A

Included

0

4

Air travel non-GHG
impact2

Included

N/A

Excluded

191

116

–39%

Other business travelemissions sources3

Included

N/A

Included

43

32

–25%

Other Scope 3 sources4

Included

N/A

Excluded

106

129

+22%

Total emissions(net-zero boundary)

584

410

30%

Total emissions(net-zero boundary
including SAF
savings)5

584

406

30%

CATEGORY

Scope 3Business travel1
We use a market-based approach to report Scope 2 emissions, which factors in the purchase of renewable electricity. In 2019, we shifted to 100%
renewable electricity for our offices and therefore report 0 KtCO2e Scope 2 (market-based) emissions.
2
Additional warming impacts generated during a flight, such as nitrogen oxides, sulfur oxides, and particulate matter, as well as the formation of contrails that contribute to effective radiative forcing.
3

Other business travel emissions include hotel nights, train travel, rental cars, and taxi journeys.

4

Other Scope 3 emissions include purchased goods and services, capital goods, employee commuting, fuel- and energy-related emissions, and waste.

In accordance with the WEF Clean Skies for Tomorrow guidance, we adopt a dual reporting approach, including and excluding emissions reductions
from the use of Sustainable Aviation Fuel certificates.
5

BOSTON CONSULTING GROUP

87

Table 2 - 2022 Carbon Credits Portfolio
LOCATION

NAME

TYPE

TECH

STANDARDID

VINTAGEVOLUME

BrazilPurus REDD+ – Acre
Amazon

AVD

REDD+

VCS +
CCB

VCS-963

2019–
2020

128,548

BrazilAgrocortex

AVD

REDD+

VCS

VCS-1686

2018

43,048Indonesia

The Katingan Project Borneo Peatlands

AVD

REDD+

VCS +
CCB

VCS-1477

2017

39,000China

Black River
Afforestation

NBR

ARR

VCS +
CCB

VCS-2370

2016–
2020

58,250

MexicoFresh Breeze Teak
Afforestation

NBR

ARR

VCS

VCS-11412019

100,000

Ghana

Community
Reforestation

NBR

ARR

VCS

VCS-9872019

18,000

Pakistan

Delta Blue Carbon

NBR

Mangrove

VCS +
CCB

VCS-2250

2021–
2022

18,250CAR

CAR-1459

2018

1,000

Puro

N/A

2022

184

U.S.A.

Indigo Carbon U.S.

NBR

Soil
CarbonSequestration

Cameroon

Biochar - Nkongsamba
Facility

HBD

Biochar406,290

Note: AVD = avoided emissions; EHR = engineered/hybrid removals; NBR = nature-based removals. Volumes are expressed in kilometric tons of CO2e.

88

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Task Force on Climate-Related Financial
Disclosures (TCFD) Index
As a global company, BCG faces various physical and transitional climate-related risks. Although we deem the levelof risk to be low, it is important to understand the potential
long-term impact of these risks and take action to mitigate
them. In this section, we summarize our approach to managing climate-related risks and opportunities in line withthe reporting recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD).
We provide more detail on our approach to managing
climate-related risks and opportunities in our CDP Climate
Disclosure, available at www.CDP.net.

Governance
BCG’s Internal Sustainability Strategic Committee (StratCo.) oversees the development, implementation, andprogress of the firm’s sustainability strategy and net-zerotarget, including oversight of climate-related risks withsupport from the Audit and Risk Committee. The Strat Co.,
which currently consists of BCG’s global chair, chief sustainability officer, chief financial officer, and people chair,meets monthly. All Strat Co. members have their annual
performance rating and remuneration tied to the internalsustainability performance of the firm. The Strat Co. is also
supported by three Operations Committees, which meetmonthly to drive operational changes. Finally, the Internal
Sustainability Team, led by BCG’s chief sustainability
officer, David Webb, is responsible for the day-to-day
operation of the sustainability program.

Through our climate-related risk and opportunity assessment, we determined that the opportunities linked to the
low-carbon transition far outweigh the risk. Given the scaleof climate adaptation and mitigation, we expect demandfor our climate services to continue to increase and tocome from an expanding range of sectors and industries.
To realize this growing opportunity, we continue to invest
heavily in our climate and environment work and havepledged $2 billion over the next decade to enable ourteams to drive climate and environmental impact acrossgovernments, industries, NGOs, and coalitions, and toadvance global progress toward the Paris agreement.
When establishing our corporate climate strategy, we
conducted a scenario analysis to assess how to align ourbusiness with a 1.5°C trajectory, while taking into consideration numerous transitional risks (reputational, market,
and technological). As a result, we have invested heavily inbusiness continuity measures to manage risks to our core
operations. For example, we mitigate business travel disruptions due to physical risks, such as extreme weather,through business continuity planning and investing in
hybrid and remote project team models. BCG’s global
orientation enables us to adapt readily to a wide range of
geographically concentrated risks, whether they be physical(such as extreme weather events) or transitional (such as
new climate policy or legislation). Furthermore, our ongoing investments in client sustainability and in internalmeasures to achieve net-zero emissions help mitigate any
reputational risks that might have a substantive impact.

Strategy
Although we have a thorough process in place to monitor
climate-related risks and our mitigation approach (seepage 90), we have not identified any risks that could have asubstantive impact on our business. This is primarily because we are a highly agile and resilient organization, ourvalue chain is not significantly exposed to climate-relatedrisks, we are not operating in a heavy emitting industry,
and we are not subject to substantive climate regulation orpolicy. In addition, we actively manage our own climate
impacts through our industry-leading net-zero program.

BOSTON CONSULTING GROUP

89

Risk Management

Metrics and Targets

At BCG we have defined three processes for monitoringand managing climate-related risks as part of our framework for enterprise risk management:

As explained in the strategy section above, the increase inclient revenue from climate and sustainability consulting
projects presents the greatest opportunity to BCG. Accordingly, we monitor and report the performance and growthof our climate and sustainability client work. In 2022, wedelivered approximately 1,000 cases to 500 clients. Since
2020, we have also invested more than $500 million—in
the form of either cash or in-kind support—in climate andsustainability action.

• Climate Change Risk Assessment. First, we conduct
a climate change risk assessment (CCRA), which looks
at physical and transitional climate-related risks andopportunities across BCG’s value chain. We assess thelikelihood, impact, management approach, and effectiveness of each risk across short-, medium-, and long-termtime horizons and under +1.5°C and +4°C warming scenarios. We update our CCRA twice per year, or as new global
climate risks emerge, and our Strat Co. reviews it annually.
• Enterprise Risk Management Integration. Second,
we review the output from the CCRA and integrate
it into the global enterprise risk management (ERM)
framework. We also share the output with the Audit
and Risk Committee yearly, and we communicate thekey risks to the managing director and partner groupthrough the annual risk report.

In addition, we track our carbon emissions globally (reported on page 48) and our progress toward our science-basedtargets (reported in Exhibit 6 on page 47). We also monitor
the cost savings associated with achieving our emissions
reduction targets and the program costs associated withdelivering our net-zero strategy (including carbon credit
and renewable energy certificate purchases). We disclose
our implicit carbon price ($16 per metric ton in 2022),
which we expect will rise to approximately $80 per metric
ton by 2030.

• Local Risk Assessment. Third, the global safety andsecurity team is responsible for managing physical risks
to BCG offices, including chronic and acute climate-­
related physical risks. In developing and maintaining
BCG’s business continuity and resiliency plan, the Safety
and Security team identifies relevant risks and develops
mitigation and resilience plans at the local level.
As explained in the strategy section above, although we havea robust risk assessment process, we have not identified any
risks that could have a substantive impact on our business.

90

EXPANDING OUR REACH, ENHANCING OUR IMPACT

Performance Data Tables
DRIVING SOCIAL IMPACTTARGET

YEAR

2019

2020

2021

2022

Number of societal and planetary impact
client cases

–

–

560

900

1,300

1,500

Number of clients with societal andplanetary impact cases

–

–

340

510

660

780

Percentage of largest clients with a societal and planetary impact case30

50%

Annually

–

52%

68%

72%

Total investment in societal and planetary impact initiatives ($million)31

–

–

180

280

310

460

PROTECTING OUR PLANETTARGET

YEAR

2019

2020

2021

2022

Number of climate and sustainability
cases

–

–

170

360

780

980

Number of clients with climate andsustainability cases

–

–

120

240

450

520

Total investment in climate and sustainability initiatives ($million)32$2 billion

2030

–

80

160

270

Share of BCG’s operations covered by
CarbonNeutral® company certification

100%

Annually

100%

100%

100%

100%

Reduction in Scope 1 and Scope 2 emissions per full-time equivalent (vs. 2018baseline)

92%

2025

86%

89%

92%

94%

Reduction in business travel emissions
per full-time equivalent (vs. 2018 baseline)

48.5%

2025

9%

82%

87%

60%

Electricity consumption from renewableenergy sources (%)

100%

Annually

100%

100%

100%

100%

Proportion of carbon dioxide removal(CDR) projects in carbon credit portfolio

100%

2030

30%

40%

44%

48%

Employees receiving climate training
materials and communications (%)

100%

Annually

100%

100%

100%

100%

Note: A dash in place of a data point in any cell of this table indicates either that no target or target year has been set or that data was not available
to report.
30. BCG began tracking this metric in 2020. “Largest clients” refers to top 50 BCG clients.
31. Includes both cash and in-kind support.
32. Includes consulting support, external secondments, net-zero partnership costs, and marketing initiatives.

BOSTON CONSULTING GROUP

91

EMPOWERING OUR PEOPLETARGET

YEAR

2019

2020

2021

2022

Global headcount33––

21,00022,00025,00030,000Global new hires34

–

–

–

–

7,000

10,000

Representation of women globally40%

Annually

43%

44%

45%

46%

Representation of women on the
Executive Committee

–

–

35%

35%

35%

33%

Representation of women amongleadership35

–

–

23%

23%

24%

24%

Representation of women among global
new hires

–

–

44%

48%

45%

Representation of women among
entry-level hires to the consulting team

40%

Annually

36%

42%

41%

41%

Representation of racial and ethnic
minorities among US workforce

–

–

40%

42%

45%

46%

Representation of racial and ethnic
minorities among US leadership37

–

–

27%

27%

30%

30%

Representation of racial and ethnic
minorities among US new hires

–

–

45%

51%

51%

51%

Employment

GenderRacial and ethnic minorities (USonly)36

33. Headcount includes permanent and temporary workers on BCG’s payroll but excludes contingency workers.
34. Permanent new hires only, not including temporary or contingency workers.
35. Includes MDPs and other senior leadership roles across BCG.
36. BCG is currently able to disclose race and ethnicity data only for our US operations. Legal restrictions prohibit BCG from gathering this data insome of our geographies.
37. Includes MDPs and other senior leadership roles.

92

EXPANDING OUR REACH, ENHANCING OUR IMPACTEMPOWERING OUR PEOPLETARGET

YEAR

2019

2020

2021

2022

Other diversity indicators (US only)
Veteran

–

–

2%

2%

2%

3%

LGBTQ+38

–

–

4%

4%

5%

6%

Disability39

–

–

2%

2%

2%

3%

Working at BCG
Average number of training days perperson40

1 weekAnnually

1 week

1 week

1 week

1 weekPercentage of employees with access tohealth and well-being support services

100%

Annually

100%

100%

100%

100%

Percentage of employees receiving annual performance reviews41

100%

Annually

–

–

100%

100%

Percentage of employees with access topersonalized career plan

100%

Annually

100%

100%

100%

100%

Note: A dash in place of a data point in any cell of this table indicates either that no target or target year has been set or that data was not available
to report.

38. LGBTQ+ data may not be fully representative due to opt-in process and confidentiality.
39. Disability data may not be fully representative due to opt-in process and confidentiality.
40. We continue to have our staff invest in one week of learning. In 2021, that mix was mainly virtual learning.
41. BCG is able to report against this metric only since the launch of a new global performance review process in 2021.

BOSTON CONSULTING GROUP

93

RESPONSIBLE BUSINESS METRICSTARGET

YEAR

2019

2020

2021

2022

–

–

8.5

8.6

11

11.7

Employees who completed our Code of Conduct
and Anti-Bribery & Corruption online training

100%

Ongoing

100%

100%

100%

100%

Employees who completed acknowledgment ofCode of Conduct and Anti-Bribery & Corruption
policies42

100%

Annually

100%

100%

100%

100%

Percentage of offices undergoing a periodic internal risk review43

100%

Ongoing

100%

100%

100%

100%

Employees who completed our data privacy andinformation security online training44

100%

Ongoing

100%

100%

100%

100%

Employees who completed annual acknowledgment of data privacy and information security
policies45

100%

Annually

100%

100%

100%

100%

Sourcing managers trained in sustainable procurement topics

100%

Annually

100%

100%

100%

100%

Spending with diverse suppliers (US only)

5%

Annually

–

2%

3%

4%

Supplier contract templates that include a clauseon adherence to the supplier code of conduct

100%

Annually

100%

100%

100%

100%

Supplier questionnaire templates that include
sustainability questions

100%

Annually

100%

100%

100%

100%

New offices conducting a travel safety risk assessment

100%

Annually

100%

100%

100%

100%

New consultants completing our travel safety
e-learning46

100%

Annually

–

100%

100%

100%

Revenue ($billion)

Sustainable procurement metrics

Safety and security metrics

Note: A dash in place of a data point in any cell of this table indicates either that no target or target year has been set or that data was not available to report.
42. All BCG staff are required to take this training. All staff completed the training when it was released, and all new hires are required to complete
it as part of their onboarding. Because new people routinely join BCG, and some of them may not have completed the training at the time ofreporting, compliance is marginally under 100%.
43. Because some active employees depart BCG, and some of them may not have completed the annual acknowledgment at the time of reporting,compliance is marginally under 100%.
44. All BCG staff are required to take this training. All staff completed the training when it was released, and all new hires are required to complete
it as part of their onboarding. Because new people routinely join BCG, and some of them may not have completed the training at the time ofreporting, compliance is marginally under 100%.
45. Because some active employees depart BCG, and some of them may not have completed the annual acknowledgment at the time of reporting,compliance is marginally under 100%.
46. The mandatory training was launched in 2020.
94

EXPANDING OUR REACH, ENHANCING OUR IMPACTWEF Stakeholder Capitalism Metrics Index
BCG is a signatory of the World Economic Forum’s Stakeholder Capitalism Metrics. We actively encourage our
stakeholders and business partners to consider adopting
the WEF metrics for their own reporting. As not all metrics#

are material for BCG, explanations have been provided
where necessary. In each case, we provide a link to therelevant section of this report where you can read more
about the topic.

Core metric

Page reference

PILLAR 1: GOVERNANCE
1

Setting purpose

Purpose and values (page 6)2

Governance body composition

Governance (page 11)
Perfomance data tables (page 91)

3

Material issues with an impact on stakeholders

Materiality (page 13)
Stakeholder engagement (page 12)4

Anti-corruption

Anti-bribery and corruption (page 76)
Perfomance data tables (page 91)

5

Protected ethics advice and reporting mechanisms

Raising concerns (page 78)

6Integrating risk and opportunity into business process

Risk management (page 78)

PILLAR 2: PLANET
7

GHG emissions

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

8

TCFD implementation

TCFD index (page 89)
Perfomance data tables (page 91)

9Land use and ecological sensitivity

Not applicable47

10

Water consumption and withdrawal in water-stressed areas

Not applicable48

PILLAR 3: PEOPLE
11

Diversity and inclusion

Diversity, equity, and inclusion (page 62)
Perfomance data tables (page 91)

12

Pay equity

Pay equity (page 61)
Diversity, equity, and inclusion (page 62)
BCG UK Gender Pay Gap Report

13

Wage level

Pay equity (page 61)

14

Risk for incidents of child, forced, or compulsory labor

Human rights (page 77)
BCG Supplier Code of Conduct

15

Health and safety

Employee well-being (page 72)
Safety and security (page 80)

16

Training provided

Learning and development (page 70)
Perfomance data tables (page 91)

47. We have programs in place to support biodiversity and ecological sensitivity surround our offices. However, as we do not own real estate and only
lease offices in city center locations, this is not considered a material topic.
48. We have programs in place to promote water conservation in our offices. However, given that we consume very low levels of water, this is notconsidered a material topic.
BOSTON CONSULTING GROUP

95

#Core metric

Page reference

PILLAR 4: PROSPERITY
17

Absolute number and rate of employment

Perfomance data tables (page 91)

18

Economic contribution

Perfomance data tables (page 91)
About BCG (page 5)

19

Financial investment contribution

Not applicable49

20

Total R&D expenses

Perfomance data tables (page 91)

21

Total tax paid

Taxation (page 78)

GRI Index
GRI 1: STANDARDSStatement of use

Boston Consulting Group, Inc. has reported in accordancewith the GRI Standards for the period ( January–
December 2022).

GRI 1 used

GRI 1: Foundation 2021

GRI 2: GENERAL DISCLOSURES
Disclosure2022 Response (page number)

2-1 Organizational details

Boston Consulting Group, Inc.
About BCG (page 5)
Governance (page 11)

2-2 Entities included in the organization’s sustainability
reporting

About this report (page 4)
BCG offices

2-3 Reporting period, frequency and contact point

About this report (page 4)

2-4 Restatements of information

No significant restatements required

2-5 External assurance

GHG methodology (page 86)
Governance (page 11)

2-6 Activities, value chain and other business
relationships

About BCG (page 5)
Industries
Sustainable procurement (page 83)

2-7 Employees

Performance data tables (page 91)

2-8 Workers who are not employees

Confidentiality constraints mean we are unable to report
all disclosures.

49. As a privately owned partnership, BCG does not publicly disclose competitively sensitive financial metrics such as capital expenditure.
96

EXPANDING OUR REACH, ENHANCING OUR IMPACTGRI 2: GENERAL DISCLOSURES
Disclosure2022 Response (page number)

2-9 Governance structure and composition

Governance (page 11)
BCG leadership

2-10 Nomination and selection of the highest governancebody

Governance (page 11)

2-11 Chair of the highest governance body

Governance (page 11)

GRI 2: GENERAL DISCLOSURES
Disclosure2022 Response (page number)

2-12 Role of the highest governance body in overseeing
the management of impacts

Governance (page 11)
BCG leadership

2-13 Delegation of responsibility for managing impacts

Governance (page 11)

2-14 Role of the highest governance body in sustainability
reporting

About this report (page 4)

2-15 Conflicts of interest

Approach to risk management and oversight (page 78)
BCG Code of Conduct

2-16 Communication of critical concerns

Raising concerns (page 78)

2-17 Collective knowledge of the highest governance body

Governance (page 11)
Our team and expertise (page 34)

2-18 Evaluation of the performance of the highest governance body

Governance (page 11)
Confidentiality constraints mean we are unable to report
all disclosures.

2-19 Remuneration policies

Governance (page 11)
Ensuring fair and equitable pay (page 61)

2-20 Process to determine remuneration

Governance (page 11)
Ensuring fair and equitable pay (page 61)

2-21 Annual total compensation ratio

Governance (page 11)
Ensuring fair and equitable pay (page 61)
Confidentiality constraints mean we are unable to report
all disclosures.

2-22 Statement on sustainable development strategy

Executive introduction (page 2)
Our vision and impact (page 8)

BOSTON CONSULTING GROUP

97

GRI 2: GENERAL DISCLOSURES
Disclosure2022 Response (page number)

2-23 Policy commitments

BCG Code of Conduct
BCG Supplier Code of Conduct
Environmental Responsibility Statement
Our code of conduct and supplier code of conduct summarize our policy commitment, but confidentiality constraints mean we are unable to report all disclosures.

2-24 Embedding policy commitments

Details on how we embed our policies are available in theapproach section of each chapter and material topic
covered within this report.

2-25 Processes to remediate negative impacts

Raising concerns (page 78)
BCG Code of Conduct
BCG Supplier Code of Conduct

GRI 2: GENERAL DISCLOSURES

98

Disclosure2022 Response (page number)

2-26 Mechanisms for seeking advice and raising concerns

Raising concerns (page 78)
BCG Code of Conduct
BCG Supplier Code of Conduct

2-27 Compliance with laws and regulations

Confidentiality constraints mean we are unable to report
all disclosures.

2-28 Membership associations

Our partner ecosystem

2-29 Approach to stakeholder engagement

Stakeholder engagement (page 12)2-30 Collective bargaining agreements

Employee dialogue (page 60)
Information unavailable. Collective bargaining agreements are not commonplace; therefore, global reporting
is not available.

EXPANDING OUR REACH, ENHANCING OUR IMPACTGRI 201: ECONOMIC PERFORMANCE
Disclosure2022 Response (page number)

3-3 Management of material topics

About BCG (page 5)
Governance (page 11)201-1 Direct economic value generated and distributed

Perfomance data tables (page 91)

201-2 Financial implications and other risks and opportunities due to climate change

TCFD index (page 89)2022 CDP Disclosure201-3 Defined benefit plan obligations and other retirement plans

Working at BCG (page 60)
Employee well-being (page 72)

201-4 Financial assistance received from government

Confidentiality constraints mean we are unable to report
all disclosures.

GRI 205: ANTI-CORRUPTIONGRI 3-3 Management of material topics

Anti-bribery and corruption (page 76)
Materiality assessment (page 13)205-1 Operations assessed for risks related to corruption

Global risk management (page 78)

GRI 205: ANTI-CORRUPTION
205-2 Communication and training about anti-corruption
policies and procedures

Anti-bribery and corruption (page 76)
Perfomance data tables (page 91)
BCG Code of Conduct
BCG Supplier Code of Conduct

205-3 Confirmed incidents of corruption and actions
taken

Anti-bribery and corruption (page 76)
Perfomance data tables (page 91)
Confidentiality constraints mean we are unable to reporton all of the required disclosures.

GRI 305: EMISSIONSGRI 3-3 Management of material topics

Measuring our climate impact (page 48)
Materiality assessment (page 13)305-1 Direct (Scope 1) GHG emissions

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

305-2 Energy indirect (Scope 2) GHG emissions

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

305-3 Other indirect (Scope 3) GHG emissions

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

305-4 GHG emissions intensity

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

BOSTON CONSULTING GROUP

99

GRI 305: EMISSIONS
305-5 Reduction of GHG emissions

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

305-6 Emissions of ozone-depleting substances (ODS)

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), andother significant air emissions

Measuring our climate impact (page 48)
Perfomance data tables (page 91)

GRI 401: EMPLOYMENT
3-3 Management of material topics

Working at BCG (page 60)
Attracting the best talent (page 58)
Materiality assessment (page 13)

401-1 New employee hires and employee turnover

Attracting the best talent (page 58)
Perfomance data tables (page 91)

401-2 Benefits provided to full-time employees that are
not provided to temporary or part-time employees

Working at BCG (page 60)
Employee well-being (page 72)

401-3 Parental leave

Working at BCG (page 60)

GRI 404: TRAINING AND EDUCATION
3-3 Management of material topics

Learning and development (page 70)
Materiality assessment (page 13)404-1 Average hours of training per year per employee

Learning and development (page 70)
Perfomance data tables (page 91)

404-2 Programs for upgrading employee skills andtransition assistance programs

Learning and development (page 70)

404-3 Percentage of employees receiving regularperformance and career development reviews

Working at BCG (page 60)
Learning and development (page 70)100

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